Bank of America to price 20-year capped notes linked to CMS rates

By Marisa Wong

Madison, Wis., Sept. 4 - Bank of America Corp. plans to price capped notes due Sept. 23, 2033 linked to the 30-year Constant Maturity Swap rate and the two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.

The initial interest rate will be 10.25%. Beginning Sept. 23, 2014, the interest rate will be (a) four times (b) the 30-year CMS rate minus the two-year CMS rate minus 25 basis points, subject to a maximum rate of 10.25% per year and a minimum rate of 0%. Interest will be payable quarterly.

The payout at maturity will be par.

BofA Merrill Lynch is the agent.

The notes will settle Sept. 23.

The Cusip number is 06048WPE4.

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