By Marisa Wong
Madison, Wis., June 27 - Bank of America Corp. priced $43 million of callable capped notes due June 27, 2031 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 12% for the first year. After that, the rate will be four times the spread of the 30-year CMS rate over the two-year CMS rate minus a strike of 25 basis points, up to a maximum rate of 12%. Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes are callable at par on any interest payment date beginning June 27, 2012.
Bank of America Merrill Lynch is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Callable capped notes
|
| Underlying rates: | 30-year and two-year Constant Maturity Swap rates
|
| Amount: | $43 million
|
| Maturity: | June 27, 2031
|
| Coupon: | 12% for first year; thereafter, four times spread of 30-year CMS rate over two-year CMS rate less 25 bps, capped at 12% and floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates from June 27, 2012 onward
|
| Pricing date: | June 23
|
| Settlement date: | June 27
|
| Underwriter: | Bank of America Merrill Lynch
|
| Fees: | 3.6%
|
| Cusip: | 06048WGG9
|
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