Bank of America plans two-year step-up notes on ruble, rupee, yuan

New York, Nov. 28 - Bank of America plans to price currency-linked step-up notes due December 2013 linked to a basket of three emerging markets currencies relative to the U.S. dollar, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of the Russian ruble, the Indian rupee and the Chinese renminbi.

If the basket finishes at or above the step level - 116% to 122% of the initial value - the payout at maturity will be par plus the basket return.

If the basket return is zero or positive and finishes at or below the step level, the payout will be par plus a step-up payment of $1.60 to $2.20 per note.

The exact step level and step-up payment will be determined at pricing.

Investors will be exposed to losses of up to 10% and will receive a minimum of $9.00 per $10.00 par note if the basket declines by more than 10%.

The securities are expected to price in December and settle in January.

Bank of America Merrill Lynch will be the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.