Bank of America plans 0% notes linked to natural gas

By Laura Lutz

Des Moines, April 29 - Bank of America plans to price zero-coupon commodity-linked notes linked to natural gas, according to a 424B5 filing with the Securities and Exchange Commission.

The notes will mature on May 30, 2012 or May 30, 2013.

The payout at maturity will be based on the average of the prices of natural gas on each annual valuation date.

If the average return is positive, the payout at maturity will be par plus the average return times a participation rate that will be at least 150%. The exact participation rate will be set at pricing.

If the average return is zero or negative, the payout at maturity will be par.

The notes are expected to price on May 27 and settle on May 30.

Banc of America Securities LLC and Banc of America Investment Services, Inc. are the underwriters.

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