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

By Susanna Moon

Chicago, May 25 - Bank of America Corp. plans to price 0% market-linked step-up notes due June 2015 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the index finishes above the step-up value - 122% to 128% of the initial value - the payout at maturity will be par plus the index gain.

If the index gains but finishes at or below the step-up value, the payout will be par plus the step-up payment of 22% to 28%.

The exact step-up amounts will be set at pricing.

If the index finishes at or above the 85% threshold level, the payout will be par.

Otherwise, investors will be fully exposed to any losses.

Bank of America Merrill Lynch will be the agent.

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

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