Bank of America plans market-linked step-up notes tied to five indexes

By Susanna Moon

Chicago, Oct. 1 - Bank of America Corp. plans to price market-linked step-up notes due October 2014 linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 30% weight, the Euro Stoxx 50 index with a 20% weight, the MSCI Emerging Markets index with a 20% weight, the S&P MidCap 400 index with a 15% weight and the Russell 2000 index with a 15% weight.

If the basket finishes at or above the step-up value - 115% to 121% of the initial level - the payout at maturity will be par plus the basket gain.

If the basket finishes at or above the initial level but at or below the step-up value, the payout will be par plus the step-up payment of 15% to 21%.

Investors will be exposed to any losses.

Bank of America Merrill Lynch will be the agent.

The notes will price and settle in October.

The exact deal terms will be determined at pricing.

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