Bank of America plans capped notes linked to 30-, two-year CMS rates

By Jennifer Chiou

New York, March 4 - Bank of America Corp. plans to price capped notes due March 20, 2034 linked to the 30-year Constant Maturity Swap rate and the two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be fixed at 10% for the first year. After that, it will accrue at 4 times the spread of 30-year CMS rate over the two-year CMS rate minus 50 basis points, up to a maximum rate of 10%. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes (Cusip: 06048WPN4) are expected to price on March 17 and settle on March 20.

BofA Merrill Lynch is the agent.

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