Bank of America plans 0% Capped Leveraged Index Return Notes linked to index basket

By E. Janene Geiss

Philadelphia, Feb. 26 - Bank of America Corp. plans to price an issue of 0% Capped Leveraged Index Return Notes due October 2010 linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 33.34% weight, along with the Dow Jones Euro Stoxx 50 and Nikkei 225 indexes, each with a 33.33% weight.

The payout at maturity will be par of $10 plus double any increase in the basket, subject to a maximum return that is expected to be 18% to 22% and will be set at pricing. Investors will receive par if the basket falls by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

The notes are expected to price in March and settle in April.

Merrill Lynch & Co., First Republic Securities Co., LLC and Banc of America Investment Services, Inc. are the underwriters.

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