By Jennifer Chiou
New York, Sept. 30 - Bank of America Corp. priced $11.65 million of callable capped notes due Sept. 30, 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 13% for the first year. After that, it will equal four times the spread of the 30-year CMS rate over the two-year CMS rate minus 50 basis points, up to a maximum rate of 13% per year. Interest will be payable quarterly and cannot be less than zero.
The payout at maturity will be par.
Beginning on Sept. 30, 2012, the notes are callable at par on any interest payment date.
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: | $11.65 million
|
| Maturity: | Sept. 30, 2031
|
| Coupon: | 13% initially; beginning on Sept. 30, 2012, four times spread of 30-year CMS rate over two-year CMS rate less 50 bps, capped at 13%, floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any interest payment date beginning on Sept. 30, 2012
|
| Pricing date: | Sept. 28
|
| Settlement date: | Sept. 30
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 4.9%
|
| Cusip: | 06048WHN3
|
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