Bank of America to price two-year step-up notes linked to MSCI EAFE

By Angela McDaniels

Tacoma, Wash., Dec. 29 - Bank of America Corp. plans to price 0% market-linked step-up notes due January 2014 linked to the MSCI EAFE index, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus the index return if the final index level is greater than the step-up value, which is expected to be 116% to 122% of the initial index level.

The payout will be par plus the step-up payment 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 step-up payment is expected to be 16% to 22%.

Investors will receive par if the index declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

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

The notes are expected to price in January and settle in February.

Bank of America Merrill Lynch is the underwriter.

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