Merrill Lynch plans 8% STEP Income Securities tied to Boeing for Svensk

By Angela McDaniels

Tacoma, Wash., Sept. 24 - AB Svensk Exportkredit plans to price 53-week 8% STEP Income Securities linked to the common stock of Boeing Co. via Merrill Lynch, Pierce, Fenner & Smith Inc., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the stock finishes at or above the step level - 108% of the initial price - the payout at maturity will be par of $10 plus 1% to 5%, with the exact step payment to be set at pricing.

If the stock finishes at or above the threshold level - 95% of the initial price - but below the step level, the payout will be par.

Investors will lose 1% for every 1% that the share price declines beyond 5%.

The notes are expected to price in October or November.

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