Merrill Lynch plans 9.25% STEP Income Securities on Ford for Svensk

By Toni Weeks

San Diego, March 25 - AB Svensk Exportkredit plans to price 9.25% STEP Income Securities due April 2012 linked to the performance of Ford Motor Co. shares, according to an FWP filing with the Securities and Exchange Commission.

Merrill Lynch is the underwriter.

Interest will be payable quarterly.

If the price of Ford shares finishes at or above the step level - 109.25% of the initial price - the payout at maturity will be par of $10 plus 1% to 5%, with the exact step payment to be set at pricing.

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

Investors will be exposed to any losses.

The notes are expected to price and settle in April.

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