Bank of America to price 8.5% STEP Income Securities linked to Goldman Sachs

By Angela McDaniels

Tacoma, Wash., Jan. 28 - Bank of America Corp. plans to price 8.5% STEP Income Securities linked to the common stock of Goldman Sachs Group, Inc., according to an FWP filing with the Securities and Exchange Commission.

The tenor of the notes will be about 53 weeks.

Interest will be payable quarterly.

The payout at maturity will be par of $10 plus the step payment if the final share price is greater than or equal to the step level. The step payment is expected to be 2% to 6% - the exact percentage will be set at pricing - and the step level will be 108.5% of the initial share price.

If Goldman Sachs shares finish below the step level but at or above the initial share price, the payout will be par. If Goldman Sachs shares finish below the initial price, investors will be fully exposed to the decline.

The notes will price in February or March.

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

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