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

By Angela McDaniels

Tacoma, Wash., Sept. 24 - Bank of America Corp. plans to price six-year variable coupon notes linked to a basket of stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes equal weights of Barrick Gold Corp., Blackstone Group LP, Coca-Cola Co., Dell Inc., Exxon Mobil Corp., Ford Motor Co., Goldman Sachs Group, Inc., JPMorgan Chase & Co., Merck & Co., Inc., Microsoft Corp., Mosaic Co., Oracle Corp., Pfizer Inc., Procter & Gamble Co., Research In Motion Ltd. and Wal-Mart Stores, Inc.

The notes will pay a coupon in November of each year equal to the average of the basket stocks' performances, subject to a floor of 2%. If a stock's return is zero or positive, its performance will be equal to the auto-cap. Otherwise, its performance will be equal to its return.

The auto-cap is expected to be 6% to 10% and will be set at pricing.

The payout at maturity will be par of $10.

The notes will price in October or November.

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

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