Bank of America plans 15-year callable capped notes on CMS rates

By Jennifer Chiou

New York, July 12 - Bank of America Corp. plans to price callable capped notes due July 14, 2026 linked to Constant Maturity Swap rates, according to a 424B8 filing with the Securities and Exchange Commission.

The notes will bear interest at 10% for the first year. After that, the rate will accrue at four times the spread of the 10-year CMS rate over the two-year CMS rate, up to a maximum coupon of 10%. 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 beginning on Oct. 14, 2011.

The notes (Cusip: 06048WGU8) are expected to settle on July 14.

Bank of America Merrill Lynch is as agent.

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