Bank of America to price step-up notes linked to Asian currencies

By Angela McDaniels

Tacoma, Wash., June 24 - Bank of America Corp. plans to price 0% currency-linked step-up notes due July 2014 linked to the performance of a basket of currencies relative to the U.S. dollar, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the Chinese renminbi, the Indonesian rupiah, the Singapore dollar and the Turkish lira.

If the basket appreciates relative to the U.S. dollar or remains flat, the payout at maturity will be par of $10 plus the greater of the basket return and the step-up payment, which is expected to be 14% to 20% and will be set at pricing.

Investors will be exposed to the decline if the basket depreciates relative to the U.S. dollar, subject to a minimum payout of $9 per $10 principal amount of notes.

The notes are expected to price in July and settle in August.

Bank of America Merrill Lynch is the agent.

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