Bank of America plans protected floaters linked to 10-year CMS rate

By Jennifer Chiou

New York, Nov. 12 - Bank of America Corp. plans to price 100% principal-protected floating-rate notes due November 2019 linked to the 10-year Constant Maturity Swap rate, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will accrue at a floating rate equal to the 10-year CMS rate, capped at 10% annually and with a to-be-determined floor of 2% to 4%. Interest is payable quarterly.

The payout at maturity will be par.

The notes will price and settle in November or December.

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

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