Bank of America plans market-linked step-up notes tied to S&P 500

By Marisa Wong

Madison, Wis., Nov. 2 - Bank of America Corp. plans to price market-linked step-up notes due December 2012 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the final index level is greater than the step-up value - 112% to 116% of the initial value - the payout at maturity will be par plus the index return.

If the final index level is greater than or equal to the initial level but below the step-up value, the payout will be par plus the step-up payment of 12% to 16%.

Investors will be fully exposed to any losses.

The exact terms will be set at pricing.

The notes are expected to price and settle in November.

Bank of America Merrill Lynch is the agent.

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