BofA plans enhanced buffer market-linked step-up notes on DJIA

By Jennifer Chiou

New York, March 24 - Bank of America Corp. plans to price 0% enhanced buffer market-linked step-up notes due April 2014 linked to the Dow Jones Industrial Average, according to an FWP with the Securities and Exchange Commission.

If the final index level is greater than the step-up value, the payout at maturity will be par of $10 plus the index return.

If the final index level is less than or equal to the step-up value and greater than or equal to 90% of the initial index level, the payout at maturity will be par plus the step-up payment.

Investors will lose 1% for every 1% that the index declines beyond 10%.

The step-up value is expected to be 110% to 116% of the initial index level, and the step-up payment is expected to be 10% to 16%. Both will be set at pricing.

The notes will price in April and settle in May.

Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.

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