Bank of America to price 8.5% STEP Income notes linked to Schlumberger

By Marisa Wong

Madison, Wis., April 25 - Bank of America Corp. plans to price 53-week 8.5% STEP Income Securities linked to the ordinary shares of Schlumberger Ltd., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the final price of Schlumberger stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus 1% to 5%. The step level will be 108.5% of the initial share price, and the exact step payment will be set at pricing.

If the final share price is greater than or equal to the initial price but less than the step level, the payout will be par.

If the final share price is less than the initial price, investors will be exposed to the decline.

The notes are expected to price and settle in May.

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

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