By Jennifer Chiou
New York, March 5 - Bank of America Corp. priced $5 million of capped notes due March 20, 2034 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.
Interest will be fixed at 10% for the first year. After that, it will accrue at 4 times the spread of 30-year CMS rate over the two-year CMS rate minus 50 basis points, up to a maximum rate of 10%. Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
BofA Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Capped notes
|
| Underlyings: | 30-year and two-year Constant Maturity Swap rates
|
| Amount: | $5 million
|
| Maturity: | March 20, 2034
|
| Coupon: | 10% for one year; after that, at 4 times the spread of 30-year CMS rate over the two-year CMS rate minus 50 basis points, capped at 10% with floor of 0%; payable quarterly
|
| Price: | Variable
|
| Payout at maturity: | Par
|
| Pricing date: | Feb. 28
|
| Settlement date: | March 20
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 3.5%
|
| Cusip: | 06048WPN4
|
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