Bank of America plans capped leveraged return notes linked to gold

By Jennifer Chiou

New York, Aug. 30 - Bank of America Corp. plans to price Capped Leveraged Index Return Notes due September 2014 linked to the spot price of gold, according to an FWP with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus 200% of any gain in the price of gold, up to a maximum return of 17% to 21%. The exact cap will be set at pricing.

Investors will receive par if the price of gold falls by up to 10% and will be exposed to any losses beyond 10%.

The notes are expected to price in September and settle in October.

Bank of America Merrill Lynch is the agent.

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