Bank of America plans step-up notes linked to European-currency basket

By Toni Weeks

San Diego, April 26 - Bank of America Corp. plans to price currency-linked step-up notes due May 2015 linked to a basket of European currencies, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket currencies are the Norwegian krone and the Swedish krona, each relative to the euro.

If the ending basket value is greater than the step-up value - 120% to 126% of the initial value - the payout at maturity will be par of $10 plus the basket return.

If the ending basket value is greater than or equal to the initial value but below the step-up value, the payout will be par plus the step-up payment of 20% to 26%.

Investors will be exposed to any decline in the basket of up to 10% and will receive 90% of par should the basket decline more than 10%.

The exact terms will be set at pricing.

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

Bank of America Merrill Lynch is the agent.

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