Bank of America plans step-up autocallables on S&P Oil & Gas index

By Toni Weeks

San Luis Obispo, Calif., Aug. 29 – Bank of America Corp. plans to price autocallable market-linked step-up notes due September 2016 linked to the S&P Oil & Gas Exploration and Production Select Industry index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 10% if the index closes at or above the initial level on the observation date in October 2015.

If the notes are not called and the index finishes above the step-up value – 124% to 130% of the initial level – the payout at maturity will be par plus the index gain.

If the index finishes at or below the step-up level but at or above the initial level, the payout will be par plus the step-up return of 24% to 30%.

Investors will be exposed to any losses if the index declines.

The exact deal terms will be set at pricing.

BofA Merrill Lynch is the agent.

The notes will price in September and settle in October.

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