Bank of America plans two-year capped leveraged notes on S&P 500

By Susanna Moon

Chicago, April 30 - Bank of America Corp plans to price 0% Capped Leveraged Index Return Notes due May 2012 based on the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10.00 plus double any index gain, up to a maximum payout of $11.60 to $12.00 per note. The exact cap will be set at pricing.

Investors will receive par if the index falls by up to 10% and will lose 1% for every 1% decline beyond 10%.

The notes will price in May and settle in June.

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

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