By Angela McDaniels
Tacoma, Wash., Nov. 23 - Bank of America Corp. priced $21 million of 100% principal-protected notes due Nov. 23, 2029 linked to the difference between 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 interest rate is 9% for the first two years. Beginning Nov. 23, 2011, interest will be a per-year rate equal to four times the spread of the 30-year CMS rate over the two-year CMS rate, subject to a floor of zero and a cap of 10% per year in each interest period. Interest is payable quarterly.
The payout at maturity will be par.
Beginning Nov. 23, 2012, the notes will be callable at par on any interest payment date.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | 100% principal-protected notes
|
| Amount: | $21 million
|
| Maturity: | Nov. 23, 2029
|
| Coupon: | 9% for first two years; beginning Nov. 23, 2011, four times the spread of the 30-year CMS rate over the two-year CMS rate with floor of zero and cap of 10%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates from Nov. 23, 2012 onward
|
| Pricing date: | Nov. 19
|
| Settlement date: | Nov. 23
|
| Agents | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | 4%
|
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