Bank of America to price variable coupon notes linked to 16 stocks

By Jennifer Chiou

New York, Aug. 27 - Bank of America Corp. plans to price variable coupon notes due September 2016 linked to a basket of stocks, according to an FWP with the Securities and Exchange Commission.

The basket includes equal weights of Altria Group, Inc., Barrick Gold Corp., Boeing Co., Citigroup Inc., Corning Inc., Goldcorp, Inc., Halliburton Co., JPMorgan Chase & Co., KLA-Tencor Corp., Macy's, Inc., Motorola, Inc., Nokia Corp., Peabody Energy Corp., Prudential Financial, Inc., Wal-Mart Stores, Inc. and Yum! Brands, Inc.

The notes will pay a coupon in September of each year equal to the average of the basket stocks' returns, subject to a floor of 2%. Each stock's return will be subject to a cap of 8.5% to 12.5%. The exact cap will be set at pricing.

The payout at maturity will be par.

The notes will price in September and settle in October.

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

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