Merrill plans 8% STEP Income Securities tied to Macy's for Svensk

By Jennifer Chiou

New York, Dec. 29 - AB Svensk Exportkredit plans to price 8% STEP Income Securities due January 2013 linked to Macy's, Inc. shares, according to an FWP with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the price of Macy's shares finishes at or above the step level - 108% of the initial price - the payout at maturity will be par of $10 plus a step payment of 1% to 5% that will be set at pricing.

If the stock finishes at or above the initial price but below the step level, the payout will be par for losses up to 5%. Investors will be exposed to losses beyond the threshold value.

The notes are expected to price and settle in January.

Bank of America Merrill Lynch is the agent.

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