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

By Angela McDaniels

Tacoma, Wash., Oct. 1 - Bank of America Corp. plans to price 0% market-linked step-up notes due October 2014 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, the payout at maturity will be par of $10 plus the index return. The step-up value will be 114% to 120% of the initial index level.

If the final index level is greater than or equal to the initial level but less than or equal to the step-up value, the payout will be par plus the step-up payment, which is expected to be 14% to 20%.

Investors will be exposed to the index decline if the final index level is less than the initial level.

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

The notes are expected to price in October and settle in November.

Bank of America Merrill Lynch is the agent.

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