Bank of America to price floating-rate notes linked to Consumer Price Index

By Angela McDaniels

Tacoma, Wash., July 29 - Bank of America Corp. plans to price floating-rate notes linked to the Consumer Price Index, according to a 424B5 filing with the Securities and Exchange Commission.

The maturity date is expected to fall between Aug. 28, 2012 and Aug. 28, 2013.

Interest will be payable monthly.

The interest rate will be equal to any positive CPI inflation adjustment multiplied by a participation rate of at least 110%. If the adjustment amount is zero or negative, investors will not receive interest for that month.

The adjustment is the percentage change in the index from the month that is 15 months prior to the month in which the interest period ends to the month that is three months prior to the interest period.

The payout at maturity will be par.

The exact maturity date and participation rate will be set at pricing, which is expected to occur on Aug. 25.

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

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