Bank of America plans capped leveraged return notes tied to 22 stocks

By Angela McDaniels

Tacoma, Wash., Sept. 18 - Bank of America Corp. plans to price 0% notes due September 2014 with capped leveraged return and buffer linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket includes the common stocks of Abbott Laboratories, Altria Group, Inc., Apple Inc., AT&T Inc., Chevron Corp., Cisco Systems, Inc., Exxon Mobil Corp., Intel Corp., International Business Machines Corp., Johnson & Johnson, Kraft Foods Inc., McDonald's Corp., Merck & Co., Inc., Microsoft Corp., Occidental Petroleum Corp., PepsiCo, Inc., Pfizer Inc., United Parcel Service, Inc., United Technologies Corp., Wal-Mart Stores, Inc., Walt Disney Co. and Wells Fargo & Co.

The payout at maturity will be par of $10 plus 140% to 160% of the basket return if the basket return is positive, subject to a maximum payment of $12 per note. The exact participation rate will be set at pricing. Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

The notes will price and settle in September.

Bank of America Merrill Lynch is the underwriter.

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