Bank of America to price step-up notes linked to krone, krona, lira

By Angela McDaniels

Tacoma, Wash., Jan. 28 - Bank of America Corp. plans to price three-year 0% currency-linked step-up notes tied to the performance of a basket of currencies relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket includes the Norwegian krone with a 33.33% weight, the Swedish krona with a 33.33% weight and the Turkish lira with a 33.34% weight.

If the final basket level is greater than or equal to the initial basket level, the payout at maturity will be par of $10 plus the greater of the step-up payment and the basket return. The step-up payment is expected to be 16% to 22% and will be set at pricing.

Investors will share in any basket decline, subject to a minimum payout of 90% of par.

The notes will price in February or March.

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

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