BofA plans Accelerated Return Notes linked to commodity indexes

By Jennifer Chiou

New York, May 25 - Bank of America Corp. plans to price 0% Accelerated Return Notes due July 2012 linked to a basket of commodity indexes, according to an FWP with the Securities and Exchange Commission.

The basket includes the S&P GSCI Agriculture Index Excess Return with a 50% weight, the Merrill Lynch Commodity index eXtra Energy Excess Return index with a 30% weight and the S&P GSCI Industrial Metals Index Excess Return with a 20% weight.

If the final basket level is greater than the initial basket level, the payout at maturity will be par of $10 plus 300% of the increase, subject to a maximum return of 12% to 16%. Investors will be fully exposed to any index decline.

The notes will price and settle in June.

Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.

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