By Susanna Moon
Chicago, July 14 - Bank of America Corp. priced $14 million of callable capped notes due July 14, 2031 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 12% for the first year. After that, it will accrue at four times the spread of the 30-year CMS rate over the two-year CMS rate minus a strike of 25 basis points, up to a maximum rate of 12%. 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.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Callable capped notes
|
| Underlying: | 30-year and two-year Constant Maturity Swap Rates
|
| Amount: | $14 million
|
| Maturity: | July 14, 2031
|
| Coupon: | 12% initially; beginning July 14, 2012, four times spread of 30-year CMS rate over two-year CMS rate less 25 bps, capped at 12%, floor of 0%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any quarterly interest payment date beginning July 14, 2012
|
| Pricing date: | July 12
|
| Settlement date: | July 14
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 3.9%
|
| Cusip: | 06048WGQ7
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
