Merrill plans 0% capped leveraged notes linked to palladium for Svensk

By Susanna Moon

Chicago, Oct. 28 - AB Svensk Exportkredit plans to price zero-coupon Capped Leveraged Index Return Notes due January 2013 linked to front month palladium futures contract via Bank of America Merrill Lynch, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10.00 plus triple any gain in the price of palladium, up to a maximum payout of $11.50 to $11.90 per note. The exact cap will be set at pricing.

Investors will receive par if the price of palladium falls by up to 10% and will lose 1% for every 1% that it declines beyond 10%.

The notes are expected to price and settle in November.

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