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Bank of America to price capped floating-rate notes tied to CPI, Libor
By E. Janene Geiss
Philadelphia, Aug. 27 - Bank of America Corp. plans to price capped floating-rate notes due October 2020 linked to the Consumer Price Index and Libor, according to an FWP filing with the Securities and Exchange Commission.
Interest is payable monthly at a floating rate, subject to a cap of 8% per year.
During the first two years, the payout will be a floating rate equal to the difference between 8% and the year-over-year percentage change in the Consumer Price Index.
After the second year, the interest will be payable at a rate equal to 1.1 times to 1.2 times Libor, subject to the 8% cap.
The payout at maturity will be par plus any unpaid interest.
The notes are expected to price in September and settle in October.
The Cusip number was not included in the filing.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the agent.
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