New Issue: Bank of America sells $9.1 million notes linked to health care basket

By Jennifer Chiou

New York, Dec. 23 - Bank of America sold $9.1 million of 1.5% senior notes due Dec. 28, 2011 in the Basket Cycles structure linked to an equally weighted basket of 25 health care stocks, according to a 424B5 filing with the Securities and Exchange Commission.

The basket includes Abbott Laboratories, Amgen Inc., Baxter International Inc., Becton, Dickinson and Co., Biogen Idec Inc., Bristol-Myers Squibb Co., Cardinal Health, Inc., Caremark Rx, Inc., CIGNA Corp., Coventry Health Care, Inc., Eli Lilly and Co., Forest Laboratories, Inc., Genzyme Corp., Gilead Sciences, Inc., HCA Inc., McKesson Corp., Medco Health Solutions, Inc., Medtronic, Inc., Merck & Co., Inc., Pfizer Inc., Quest Diagnostics Inc., Schering-Plough Corp., Stryker Corp., Wyeth and Zimmer Holdings, Inc.

The payout at maturity is par plus the amount by which the basket performance exceeds the sum of all the interest payments over the life of the notes, equivalent to 9%. The basket performance is measured annually. Holders will not receive less than par at maturity.

Issuer:	Bank of America
Issue:	Senior notes in Basket Cycles structure
Underlying basket:	Equally weighted: Abbott Laboratories, Amgen Inc., Baxter International Inc., Becton, Dickinson and Co., Biogen Idec Inc., Bristol-Myers Squibb Co., Cardinal Health, Inc., Caremark Rx, Inc., CIGNA Corp., Coventry Health Care, Inc., Eli Lilly and Co., Forest Laboratories, Inc., Genzyme Corp., Gilead Sciences, Inc., HCA Inc., McKesson Corp., Medco Health Solutions, Inc., Medtronic, Inc., Merck & Co., Inc., Pfizer Inc., Quest Diagnostics Inc., Schering-Plough Corp., Stryker Corp., Wyeth, Zimmer Holdings, Inc.
Amount:	$9.1 million
Maturity:	Dec. 28, 2011
Coupon:	1.5%
Price:	Par
Payout at maturity:	Par multiplied by average performance of basket on each annual pricing date less sum of all interest payments over life of notes (equal to 9%), floor of par, annual pricing dates are Dec. 22, 2006, Dec. 22, 2007, Dec. 22, 2008, Dec. 22, 2009, Dec. 22, 2010 and Dec. 22, 2011
Listing:	"BOR.E" on American Stock Exchange
Agents:	Banc of America Securities LLC, Banc of America Investment Services, Inc.
Pricing date:	Dec. 22
Settlement date:	Dec. 29

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