Bank of America plans market-linked step-up notes tied to MSCI EAFE

By Toni Weeks

San Diego, Oct. 14 - Bank of America Corp. plans to price market-linked step-up notes due October 2013 linked to the MSCI EAFE index, according to an FWP filing with the Securities and Exchange Commission.

If the final index level is greater than the step-up value - 120% to 126% of the initial value - the payout at maturity will be par plus the index return.

If the final index level is greater than or equal to the initial level but is below the step-up value, the payout will be par plus the step-up payment of 20% to 26%.

Investors will receive par if it drops by up to 10% and will be exposed to losses beyond 10%.

The exact terms will be set at pricing.

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

Bank of America Merrill Lynch is the agent.

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