Bank of America to price 11% STEP Income notes on Freeport-McMoRan

By Marisa Wong

Madison, Wis., July 10 - Bank of America Corp. plans to price 11% STEP Income Securities due August 2013 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the final price of Freeport-McMoRan stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus the step payment. The step level will be 111% of the initial share price. The step payment is expected to be 1% to 5% and will be set at pricing.

If the final share price is greater than or equal to the threshold level, 95% of the initial share price, but less than the step level, investors will receive par.

If the final share price is less than the threshold level, investors will lose 1% for every 1% that the price declines below the threshold level.

The notes are expected to price in July and settle in August.

Bank of America Merrill Lynch is the agent.

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