Bank of America to price 20-year capped notes linked to CMS rates

By Toni Weeks

San Luis Obispo, Calif., July 23 - Bank of America Corp. plans to price capped notes due Aug. 6, 2033 linked to the 30-year and five-year Constant Maturity Swap rates, according to a 424B2 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 4.75 times the spread of the 30-year CMS rate over the five-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 (Cusip: 06048WPB0) are expected to settle on Aug. 6.

BofA Merrill Lynch will act as agent.

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