Bank of America plans 90% protected Indian rupee-linked step-up notes

By Toni Weeks

San Diego, Feb. 3 - Bank of America Corp. plans to price currency-linked step-up notes due March 2014 linked to the performance of the Indian rupee relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

If the exchange rate finishes above the step level - 116% to 122% of the initial value - the payout at maturity will be par of $10.00 plus the exchange rate return.

If the exchange rate return is zero or positive and finishes at or below the step level, the payout will be par plus a step-up payment of $1.60 to $2.20 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 $9.00 if the exchange rate declines by more than 10%.

The notes are expected to price in February and settle in March.

Bank of America Merrill Lynch is the agent.

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