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Bank of America to price capped notes due 2033 tied 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 two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will bear interest at 9.5% for the first year. After that, the rate will accrue at four times the spread of the 30-year CMS rate over the two-year CMS rate minus 25 basis points, up to a maximum coupon of 9.25%. Interest will be payable quarterly and cannot be less than zero.
The payout at maturity will be par.
The notes (Cusip: 06048WPC8) are expected to settle on Aug. 6.
BofA Merrill Lynch will act as agent.
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