Bank of America plans variable coupon notes tied to 12 commodities

By Jennifer Chiou

New York, July 29 - Bank of America Corp. plans to price variable coupon notes due September 2016 linked to a basket of commodities, according to an FWP with the Securities and Exchange Commission.

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

The notes will pay a coupon in September of each year equal to the average of the basket components' performances, subject to a floor of 1.5%. If a component's return is positive, its performance will be equal to the cap of 7% to 11%. Otherwise, its performance will be equal to its return.

The payout at maturity will be par of $10.

The notes will price and settle in September.

Bank of America Merrill Lynch is the agent.

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