BofA to price 10% STEP Income Securities linked to Freeport-McMoRan

By Jennifer Chiou

New York, March 8 - Bank of America Corp. plans to price 10% STEP Income Securities due April 2011 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

The payout at maturity will be par of $10 plus the step payment if the final share price is greater than or equal to the step level of 110% of the initial share price. The potential step payment is 1% to 5%. Terms will be set at pricing.

If Freeport-McMoRan shares finish below the step level but at or above 95% of the initial share price, the payout will be par. If Freeport-McMoRan shares finish below 95% of the initial price, investors will be fully exposed to the decline, with a floor of 5%.

The notes will price and settle in March.

Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.

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