Bank of America plans market-linked step-up notes on three indexes

By Susanna Moon

Chicago, Nov. 27 - Bank of America Corp. plans to price market-linked step-up notes due December 2016 tied to a basket of indexes, according to an FWP with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 40% weight, the Euro Stoxx 50 index with a 30% weight and the MSCI EAFE index with a 30% weight.

If the basket finishes at or above the step-up value - 118% of the initial level - the payout at maturity will be par plus 125% to 145% of any index gain. The exact participation rate will be set at pricing.

If the basket finishes below the step-up level but at or above the initial level, the payout will be par plus the step-up return of 18%.

Otherwise, investors will be fully exposed to any losses.

BofA Merrill Lynch is the agent.

The notes will price and settle in December.

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