Bank of America to price 9% STEP Income Securities linked to Ford

By Marisa Wong

Milwaukee, March 17 - Bank of America Corp. plans to price 9% STEP Income Securities due April 2011 linked to the common stock of Ford Motor Co., according to an FWP filing with the Securities and Exchange Commission.

Interest is payable quarterly.

If the final share price of Ford stock is greater than or equal to the step level - 109% of the initial share price - the payout at maturity will be par of $10 plus 1% to 5%. The exact step payment will be set at pricing.

If the final share price is greater than or equal to the initial share price but less than the step level, the payout will be par.

If the final share price is less than the threshold share price, which is 95% of the initial share price, investors will be exposed any decline beyond 5%.

The notes are expected to price in March and settle in April.

Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.

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