Bank of America plans capped leveraged return notes linked to indexes

By Susanna Moon

Chicago, Jan. 7 - Bank of America Corp. plans to price 0% Capped Leveraged Index Return Notes due January 2015 tied to a global equity basket, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the S&P 500 index with a 45% weight, the MSCI EAFE index with a 27.5% weight and the MSCI Emerging Markets index with a 27.5% weight.

The payout at maturity will be par plus double any basket gain, up to a maximum return of 13% to 17%. The exact cap will be set at pricing.

Investors will receive par if the basket falls by up to 10% and will lose 1% for every 1% decline beyond 10%.

Bank of America Merrill Lynch will be the underwriter.

The notes are expected to price in January and settle in February.

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