New Issue: Bank of America prices $11.9 million principal-protected notes linked to CMS rates

By E. Janene Geiss

Philadelphia, Sept. 22 - Bank of America Corp. priced an $11.9 million issue of 100% principal-protected notes due Sept. 25, 2019 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.

Interest accrues at 10% for the first year. After that, interest will accrue at 10 times the spread of the 30-year CMS rate over the two-year CMS rate minus a strike rate of 0.5%, capped at 10% annually and with a floor of zero. Interest is payable quarterly.

The payout at maturity will be par.

The notes will be callable at par on any interest payment date beginning Sept. 25, 2012.

Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC and Banc of America Investment Services, Inc. are the agents.

Issuer:	Bank of America Corp.
Issue:	100% principal-protected notes
Amount:	$11.9 million
Maturity:	Sept. 25, 2019
Coupon:	10% for the first year; beginning Sept. 25, 2010, a per-year rate equal to 10 times the spread of the 30-year CMS rate over the two-year CMS rate minus 0.5%, with cap of 10% per year and floor of zero; payable quarterly
Price:	Par
Payout at maturity:	Par
Call option:	At par on interest payment dates from Sept. 25, 2012 onward
Pricing date:	Sept. 18
Settlement date:	Sept. 25
Agents:	Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC and Banc of America Investment Services, Inc.
Fees:	1.75%

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