Bank of America plans 90% protected BRIC currency-linked step-up notes

By Toni Weeks

San Diego, Oct. 6 - Bank of America plans to price currency-linked step-up notes due October 2013 linked to a basket of four currencies relative to the U.S. dollar, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the Brazilian real, the Russian ruble, the Indian rupee and the Chinese renminbi.

If the basket finishes at or above the step level - 119% to 125% of the initial value - the payout at maturity will be par plus the basket return.

If the basket return is zero or positive and finishes at or below the step level, the payout will be par plus a step-up payment of $1.90 to $2.50 per note.

The exact step level and step-up payment will be determined at pricing.

Investors will be exposed to losses of up to 10% and will receive a minimum of $9.00 if the basket declines by more than 10%.

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

Bank of America Merrill Lynch will be the agent.

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