By Susanna Moon
Chicago, Dec. 15 - Bank of America Corp. priced $9.4 million of callable capped notes due Dec. 15, 2030 based on the 30-year and five-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 11% for the first two years. After that, the rate will be four times the spread of the 30-year CMS rate over the five-year CMS rate minus a strike of 12.5 basis points, up to a maximum of 11%. Interest is payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes are callable at par on any interest payment date beginning Dec. 15, 2015.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Callable capped notes
|
| Underlying rates: | 30-year and five-year Constant Maturity Swap rates
|
| Amount: | $9.4 million
|
| Maturity: | Dec. 15, 2030
|
| Coupon: | 11% for two years; thereafter, four times spread of 30-year CMS rate over five-year CMS rate less 12.5 bps, capped at 11% with floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates after five years
|
| Pricing date: | Dec. 13
|
| Settlement date: | Dec. 15
|
| Underwriter: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | 4.6%
|
| Cusip: | 06048WET3
|
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