BofA plans enhanced market-linked step-up notes on Dow industrials

By Jennifer Chiou

New York, Sept. 12 - Bank of America Corp. plans to price 0% enhanced market-linked step-up notes with buffer due September 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 of 123% to 129% of the initial index level, 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 of 23% to 29%.

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

The step-up value and the step-up payment will be set at pricing.

The notes will price in September and settle in October.

Bank of America Merrill Lynch is the underwriter.

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