By Susanna Moon
Chicago, Jan. 13 - Bank of America Corp. priced $17 million of callable capped notes due Jan. 13, 2031 based on the 30-year Constant Maturity Swap rate and two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 11% for the first year. After that, the rate will be 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 maximum of 11%. Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes are callable at par on any interest payment date beginning Jan. 13, 2012.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Callable capped notes
|
| Underlying rates: | 30-year and two-year Constant Maturity Swap rates
|
| Amount: | $17 million
|
| Maturity: | Jan. 13, 2031
|
| Coupon: | 11% for one year; thereafter, four times spread of 30-year CMS rate over two-year CMS rate less 25 bps, capped at 11% with floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates after one year
|
| Pricing date: | Jan. 11
|
| Settlement date: | Jan. 13
|
| Underwriter: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | 4.5%
|
| Cusip: | 06048WEY2
|
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