By Susanna Moon
Chicago, May 28 - Bank of America Corp. priced $15.5 million of 100% principal-protected notes due May 28, 2030 based on 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 13% for the first two years. After that, the rate will accrue at 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 cap of 13% per year. Interest will be payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes will be callable at par on any interest payment date beginning May 28, 2014.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | 100% principal-protected notes
|
| Underlying rates: | 30-year and two-year Constant Maturity Swap rates
|
| Amount: | $15.5 million
|
| Maturity: | May 28, 2030
|
| Coupon: | 13% for two years; after that, four times the spread of 30-year CMS rate over two-year CMS rate minus a strike of 25 bps, capped at 13%; payable quarterly
|
| Call: | At par on any interest date beginning May 28, 2014
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Pricing date: | May 26
|
| Settlement date: | May 28
|
| Agent: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | 3%
|
| Cusip: | 06048WCB4
|
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