Bank of America plans 9.5% Step Income Securities linked to Goodyear

By E. Janene Geiss

Philadelphia, May 26 - Bank of America Corp. plans to price 9.5% Step Income Securities due June 2012 linked to the common stock of the Goodyear Tire & Rubber Co., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the final price of Goodyear stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus the step payment. If the final price less than the step level but greater than or equal to the initial price, the payout will be par. Investors will receive par if the stock's price declines by 5% or less and will lose 1% for every 1% that it declines beyond 95%.

The step level will be 109.5% of the initial share price. The step payment will be 1% to 5%.

The notes are expected to price and settle in June.

Bank of America Merrill Lynch is the underwriter.

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