Bank of America plans principal-protected conditional participation notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Jan. 29 - Bank of America Corp. plans to price zero-coupon 100% principal-protected conditional participation notes due 2012 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the final index level is greater than the threshold level, then the payout at maturity will be par of $10 plus 10%. The threshold level is expected to be 132% to 136% of the initial index level and will be set at pricing.

If the final level is greater than the initial level and less than or equal to the threshold level, then the payout will be par plus the index gain.

If the final level is less than the initial level, then the payout will be par.

The issuer said it may apply to list the notes on NYSE Arca under the symbol "PVM."

The notes will price in February or March.

Merrill Lynch & Co. and First Republic Securities Co., LLC are the underwriters.

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