Bank of America plans Capped Leveraged notes linked to DJ Real Estate

By Jennifer Chiou

New York, Dec. 18 - Bank of America Corp. plans to price 0% Capped Leveraged Index Return Notes due January 2012 linked to the Dow Jones U.S. Real Estate index, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus double any index gain, up to a maximum return of 34% to 38%. The exact cap will be set at pricing.

Investors will receive par if the index falls by up to 20% and will be exposed to declines beyond 20%.

The notes are expected to price in January and settle in February.

Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the agents.

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