By Angela McDaniels
Tacoma, Wash., Jan. 13 - Bank of America Corp. priced $20 million of 100% principal-protected notes due Jan. 13, 2025 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is fixed at 11% for the first year. Beginning Jan. 13, 2011, the interest rate will equal four times the spread of the 30-year CMS rate over the two-year CMS rate minus 0.25%, subject to a floor of zero and a cap of 15% per year in each interest period. Interest is payable quarterly.
The payout at maturity will be par.
Beginning Jan. 13, 2014, the notes are callable at par on any interest payment date.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | 100% principal-protected notes
|
| Underlying rates: | 30-year and two-year Constant Maturity Swap rates
|
| Amount: | $20 million
|
| Maturity: | Jan. 13, 2025
|
| Coupon: | 11% for the first year; beginning Jan. 13, 2011, four times the spread of the 30-year CMS rate over the two-year CMS rate minus 0.25%, with a floor of zero and a cap of 15%; payable quarterly
|
| Price: | Variable
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates from Jan. 13, 2014 onward
|
| Pricing date: | Jan. 12
|
| Settlement date: | Jan. 13
|
| Underwriter: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | 4.19%
|
| Cusip: | 06048WAN0
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
