Bank of America plans market-linked step-up notes linked to Euro Stoxx

By Angela McDaniels

Tacoma, Wash., April 1 - Bank of America Corp. plans to price 0% market-linked step-up notes due April 2015 linked to the Euro Stoxx 50 index, according to an FWP filing with the Securities and Exchange Commission.

If the final index level is greater than the step-up value, the payout at maturity will be par of $10 plus the index return. The step-up value is expected to be 114% to 120% of the initial index level.

If the final index level is greater than or equal to the initial level but less than or equal to the step-up value, the payout will be par plus the step-up payment, which is expected to be 14% to 20%.

Investors will receive par if the index declines by 5% or less and will lose 1% for every 1% that it declines beyond 5%.

The exact step-up value and step-up payment will be set at pricing.

BofA Merrill Lynch is the agent.

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

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