Merrill plans 8.5% STEP Income Securities tied to Macy's for Svensk

By Jennifer Chiou

New York, Dec. 6 - AB Svensk Exportkredit plans to price 8.5% STEP Income Securities due January 2012 linked to the common stock of Macy's, Inc. via Merrill Lynch, Pierce, Fenner & Smith Inc., according to an FWP with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the stock finishes at or above the step level - 108.5% of the initial price - the payout at maturity will be par of $10 plus 1% to 5%. The exact step payment will be set at pricing.

If the stock finishes at or above the threshold level - 95% of the initial price - but below the step level, the payout will be par.

Investors will lose 1% for every 1% that the final share price falls below the threshold level.

The notes are expected to price and settle in December.

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