Bank of America to price step-up notes linked to rupee and renminbi

By Marisa Wong

Madison, Wis., Feb. 23 - Bank of America Corp. plans to price 0% currency-linked step-up notes due March 2015 linked to a basket of Asian currencies relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the Indian rupee and the Chinese renminbi.

If the basket finishes above the step-up value - 120% to 126% of the initial value - the payout at maturity will be par plus the basket return.

If the basket return is zero or positive and the basket finishes at or below the step-up value, the payout will be par plus a step-up payment of $2.00 to $2.60 per $10.00 par note.

Investors will be exposed to losses of up to 10% and will receive a minimum payment of $9.00 per note if the basket declines by more than 10%.

The notes will price in March and settle in April.

Bank of America Merrill Lynch is the agent.

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