Bank of America to sell 10% STEP Income notes linked to Union Pacific

By Susanna Moon

Chicago, Nov. 30 - Bank of America Corp. plans to price 10% STEP Income Securities due January 2011 based on the common stock of Union Pacific Corp., according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If Union Pacific stock finishes at or above the step level - 110% of the initial share price - the payout at maturity will be par of $10 plus 2% to 6%, with the exact step payment to be set at pricing.

Investors will be exposed to any losses.

The notes will price and settle in December.

Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.

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