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

By Angela McDaniels

Tacoma, Wash., Aug. 30 - Bank of America Corp. plans to price 0% market-linked step-up notes due September 2015 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the index's final 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 110% to 116% of the initial index level.

If the index's final level is less than or equal to the step-up level but greater than or equal to the initial level, the payout will be par plus the step-up return, which is expected to be 10% to 16%.

If the final index level is less than the initial level, investors will have 1-to-1 exposure to the decline.

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

BofA Merrill Lynch is the agent.

The notes will price in September and settle in October.

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