Bank of America to price variable-coupon notes linked to commodities

By Angela McDaniels

Tacoma, Wash., Dec. 30 - Bank of America Corp. plans to price variable-coupon notes due February 2015 linked to a basket of commodities, according to an FWP filing with the Securities and Exchange Commission.

The equally weighted basket includes gold, palladium, platinum and copper spot prices and West Texas Intermediate light sweet crude oil, RBOB gasoline, heating oil, natural gas, soybeans, sugar, wheat and corn futures contracts.

The notes will pay a coupon each year equal to the average of the basket components' performances, subject to a minimum coupon of 1%. If a component's return is 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 are expected to price in January and settle in February.

Bank of America Merrill Lynch is the agent.

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