Bank of America plans market-linked step-up notes on basket of indexes

By Toni Weeks

San Diego, Sept. 26 - Bank of America Corp. plans to price market-linked step-up notes due October 2014 linked to a basket of unequally weighted indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket is comprised of the S&P 500 index with a 30% weight, the Euro Stoxx 50 index with a 20% weight, the MSCI Emerging Markets index with a 20% weight, the S&P MidCap 400 index with a 15% weight and the Russell 2000 index with a 15% weight.

If the final basket level is greater than the step-up value - 115% to 121% of the initial level - the payout at maturity will be par plus the basket return.

If the final basket level is greater than or equal to the initial level but equal to or below the step-up value, the payout will be par plus the step-up payment of 15% to 21%.

Investors will be fully exposed to losses if the basket return is negative.

The exact terms will be determined at pricing.

The notes are expected to price and settle in October.

Bank of America Merrill Lynch will be the agent.

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