Bank of America plans Basket Cycles linked to five indexes

By Laura Lutz

Des Moines, Oct. 22 - Bank of America plans to issue basket capital-protected equity performance linked securities (Basket Cycles) due Nov. 30, 2012 linked to a basket of five indexes, according to a 424B5 filing with the Securities and Exchange Commission.

The basket will include the Dow Jones Industrial Average with a 68% weight, the S&P MidCap 400 index with a 10% weight, the S&P SmallCap 600 index with a 7% weight, the Dow Jones Euro Stoxx 50 index with a 7.5% weight and the Nikkei 225 index with a 7.5% weight.

The notes will bear interest at between 1.25% and 1.75% per year, payable semiannually.

The payout at maturity will be par plus the average basket return minus the total coupon payments over the life of the notes.

The average basket return will be the average of the basket levels on five annual valuation dates divided by the initial basket level.

The notes are expected to settle in November.

Banc of America Securities LLC and Banc of America Investment Services, Inc. will be the agents.

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