By Angela McDaniels
Tacoma, Wash., Sept. 9 - Bank of America Corp. priced $4 million of floating-rate commodity-linked notes due Oct. 15, 2012 linked to the Merrill Lynch Commodity Index eXtra A6L2 2x Leverage Excess Return index, according to an FWP filing with the Securities and Exchange Commission.
The coupon is one-month Libor plus 10 basis points. It will be reset monthly and is payable at maturity.
The notes are putable at any time subject to a minimum of $100,000 of notes. They will be called if the index closes at or below 85% of its initial level.
The payout at maturity or upon redemption will be par plus triple the sum of the index return minus a fee of 0.8% per year.
The index measures the leveraged return of a hypothetical long position in the commodity futures contracts included in the Merrill Lynch Commodity index eXtra A06 Index - Excess Return and a hypothetical short position in the commodity futures contracts included in the Dow Jones - UBS Commodity Index - Excess Return over time.
Bank of America Merrill Lynch is the agent.
The initial index level and the notes' Cusip number are to be determined.
| Issuer: | Bank of America Corp.
|
| Issue: | Commodity-linked notes
|
| Underlying index: | Merrill Lynch Commodity Index eXtra A6L2 2x Leverage Excess Return index Amount: | $4 million
|
| Maturity: | Oct. 15, 2012
|
| Coupon: | One-month Libor plus 10 bps, reset monthly and payable at maturity
|
| Price: | Par
|
| Payout at maturity: | Par plus 300% of sum of index return minus fee of 0.8% per year
|
| Put option: | At any time
|
| Call: | Automatically if index closes at or below 85% of initial level
|
| Pricing date: | Sept. 9
|
| Settlement date: | Sept. 16
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | None
|
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