Bank of America plans leveraged return notes tied to S&P Diversified Trend Indicator Price Return

By Angela McDaniels

Tacoma, Wash., June 16 - Bank of America Corp. plans to price floating-rate leveraged return notes due June 2010 linked to the S&P Diversified Trend Indicator Price Return index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly and will equal one-month Libor minus a spread.

The notes will be automatically called if the index falls to or below 85% of its initial level during the life of the notes.

The payout upon redemption or at maturity will be par of $10,000 plus triple the sum of the index return minus an annual fee.

The spread and fee will be determined at pricing.

The notes will price in June.

Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.

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