Bank of America to price 11% STEP Income Securities linked to Ford

By Toni Weeks

San Diego, Nov. 2 - Bank of America Corp. plans to price 11% STEP Income Securities due November 2012 linked to Ford Motor Co. shares, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the price of Ford shares finishes at or above the step level - 111% of the initial price - the payout at maturity will be par of $10 plus a step payment of 1% to 5% that will be set at pricing.

If the stock finishes at or above 95% of the initial price but below the step level, the payout will be par.

Investors will be exposed to losses beyond the 5% buffer.

The notes are expected to price and settle in November.

Bank of America Merrill Lynch is the agent.

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