By Jennifer Chiou
New York, Nov. 3 - Bank of America Corp. priced $15 million of callable capped notes due Nov. 4, 2031 linked to 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 12% for the first year. After that, it will accrue at 4.2 times the spread of the 30-year CMS rate over the two-year CMS rate, up to a maximum rate of 12%. Interest will be payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes are callable at par on any quarterly interest payment date after one year.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Callable capped notes
|
| Underlying: | 30-year and two-year Constant Maturity Swap rates
|
| Amount: | $15 million
|
| Maturity: | Nov. 4, 2031
|
| Coupon: | 12% initially; beginning on Nov. 4, 2012, 4.2 times spread of 30-year CMS rate over two-year CMS rate, capped at 12%, floor of 0%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any quarterly interest payment date beginning on Nov. 4, 2012
|
| Pricing date: | Nov. 1
|
| Settlement date: | Nov. 4
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 5%
|
| Cusip: | 06048WJA9
|
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