Bank of America to price step-up notes linked to four indexes

By Angela McDaniels

Tacoma, Wash., Sept. 11 - Bank of America Corp. plans to price 0% market-linked step-up notes due September 2016 linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the S&P 500 index, the Russell 2000 index, the MSCI EAFE index and the MSCI Emerging Markets index.

If the basket's final level is greater than the step-up value, the payout at maturity will be par of $10 plus the basket return. The step-up value is expected to be 112% to 118% of the initial basket level.

If the basket's final level is less than or equal to the step-up level but greater than or equal to the initial level, the payout will be par plus the step-up return, which is expected to be 12% to 18.

If the final basket level is less than the initial level but declines by no more than 5%, the payout will be par. Otherwise, investors will lose 1% for every 1% that the basket declines beyond 5%.

The exact step-up value and step-up return will be set at pricing.

BofA Merrill Lynch is the agent.

The notes will price in September and settle in October.

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