Bank of America plans step-up notes on European currency basket

By Marisa Wong

Madison, Wis., April 28 - Bank of America Corp. plans to price 0% currency-linked step-up notes due June 2014 linked to a basket of four equally weighted currencies relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

The underlying currencies are the Norwegian krone, the Swedish krona, the British pound and the euro.

If the basket finishes flat or increases by up to the step-up value, which will be 110% to 116% of the initial level, the payout at maturity will be par of $10.00 plus the step-up payment of $1.00 to $1.60 per note.

If the basket rises above the step-up value, the payout will be par plus any gains.

If the basket falls, investors will share in those losses, with a minimum payout of $9.00 per note.

The notes will price in May and settle in June.

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

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