New Issue: Bank of America sells $49.55 million capped leveraged notes linked to S&P 500

By Susanna Moon

Chicago, Aug. 2 - Bank of America Corp. priced $49.55 million of 0% Capped Leveraged Index Return Notes due July 27, 2012 based on the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10.00 plus double any index gain, up to a cap of $12.592 per note.

Investors will receive par if the index falls by up to 15% and will be exposed to any decline beyond 15%.

The issuer said it applied to list the notes on the NYSE Arca under the ticker "CDK."

Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.

Issuer:	Bank of America Corp.
Issue:	Capped Leveraged Index Return Notes
Underlying index:	S&P 500 index
Amount:	$49,549,100
Maturity:	July 27, 2012
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 200% of any index gain, capped at 25.92%; exposure to losses beyond 15%
Initial level:	1,101.53
Threshold level:	991.38, or 90% of initial level
Pricing date:	July 29
Settlement date:	Aug. 5
Underwriters:	Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
Fees:	2%
Cusip:	06052K356

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