Bank of America plans two-year step up notes linked to Brazilian real

By Marisa Wong

Madison, Wis., Oct. 8 - Bank of America Corp. plans to price 0% currency-linked step up notes due October 2012 linked to the exchange rate of the Brazilian real relative to the euro, according to an FWP filing with the Securities and Exchange Commission.

If the real weakens relative to the euro, the payout at maturity will be par of $10 plus the greater of the step up payment and the increase in the exchange rate. The step up payment will be 12% to 18% and will be set at pricing.

If the real strengthens relative to the euro, investors will be exposed to the decrease in the exchange rate, with a minimum payout of 90% of par.

The notes are expected to price in October and settle in November.

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

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