Bank of America plans 90% protected step-up notes on Asian currencies

By Marisa Wong

Madison, Wis., April 4 - Bank of America Corp. plans to price currency-linked step-up notes due May 2015 linked to a basket of currencies relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the Indonesian rupiah, the Indian rupee and the Chinese renminbi.

If the basket finishes at or above the step-up value - 124% to 130% of the initial value - the payout at maturity will be par plus the basket return.

If the basket return is zero or positive but the basket finishes at or below the step-up value, the payout will be par plus a step-up payment of 24% to 30%.

The exact step-up value 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 April and settle in May.

Bank of America Merrill Lynch will be the agent.

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