Bank of America plans lock-in notes tied to Dow Jones Global Titans 50

By Angela McDaniels

Tacoma, Wash., Dec. 30 - Bank of America Corp. plans to price 0% lock-in notes due February 2015 linked to the Dow Jones Global Titans 50 index, according to an FWP filing with the Securities and Exchange Commission.

If a lock-in event occurs, the payout at maturity will be par of $10 plus the greater of the index return and the highest lock-in amount.

The lock-in provision is triggered if the index's closing level on either observation date is at least 110% of the initial index level. The observation dates will fall in January 2013 and January 2014. The lock-in amount is $1 per note if the increase is 10% to 19.99%, $2 if the increase is 20% to 29.99% and $3 if the increase is 30% or more.

If no lock-in event occurs, investors will receive par plus the index return if the index increases. They will receive par if the index declines but not below the threshold level, and they will lose 1% for every 1% that it declines below the threshold level.

The threshold level is expected to be 80% to 90% of the initial index level and will be set at pricing.

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

Bank of America Merrill Lynch is the agent.

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