Bank of America plans step-up notes tied to emerging market currencies

By Susanna Moon

Chicago, Oct. 6 – Bank of America Corp. plans to price currency-linked step-up notes due October 2016 linked to a basket of equally weighted emerging market currencies, relative to the euro, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying currencies are the Chinese renminbi, the Indian rupee and the Russian ruble.

If the basket finishes at or above the step-up value – 117% to 123% of the initial level – the payout at maturity will be par plus the gain.

If the basket finishes below the step-up level but at or above the initial level, the payout will be par plus the step-up return of 17% to 23%.

Investors will be exposed to losses, with a minimum payout of 90% of par.

The exact deal terms will be set at pricing.

Bank of America Merrill Lynch is the agent.

The notes will price in October and settle in November.

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