Bank of America plans 20-year callable capped notes tied to CMS rates

By Marisa Wong

Madison, Wis., April 25 - Bank of America Corp. plans to price callable capped notes due May 4, 2032 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will bear interest at 11.25% for the first year. After that, the rate will accrue at four times the spread of the 30-year CMS rate over the two-year CMS rate, up to a maximum coupon of 11.25%. 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.

The notes (Cusip: 06048WLX6) are expected to settle on May 4.

Bank of America Merrill Lynch will act as agent.

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