Bank of America plans market-linked step-up notes tied to S&P 500

By Toni Weeks

San Diego, April 4 - Bank of America Corp. plans to price market-linked step-up notes due April 2015 linked to the S&P 500 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 equal to or below the step-up value, the payout will be par plus the step-up payment of 20% to 26%.

Investors will receive par if the index falls by up to 15% and will be exposed to losses beyond the 15% buffer.

The exact terms will be set at pricing.

The notes are expected to price in April and settle in May.

Bank of America Merrill Lynch is the agent.

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