Bank of America plans 8% Step Income Securities on International Paper

By Marisa Wong

Madison, Wis., Sept. 13 - Bank of America Corp. plans to price 53-week 8% Step Income Securities linked to the common stock of International Paper Co., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the final price of International Paper stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus the step payment. If the final price less than the step level but greater than or equal to the threshold price - 90% of the initial price - the payout will be par. Investors will be exposed to any decline beyond the threshold.

The step level will be 108% of the initial share price. The step payment is expected to be 1% to 5% and will be set at pricing.

The notes are expected to price in September and settle in October.

Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.

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