By Jennifer Chiou
New York, June 24 - Bank of America Corp. priced $11 million of callable capped notes due June 24, 2030 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is fixed at 15% for the first year. Beginning June 24, 2011, the interest rate will equal four times the spread of the 30-year CMS rate over the two-year CMS rate minus 25 basis points, subject to a floor of zero and a cap of 15%. Interest is payable quarterly.
The payout at maturity will be par.
Beginning June 24, 2014, the notes are callable at par on any interest payment date.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Callable capped notes
|
| Underlying rates: | 30-year and two-year Constant Maturity Swap rates
|
| Amount: | $11 million
|
| Maturity: | June 24, 2030
|
| Coupon: | 15% for the first year; beginning June 24, 2011, four times the spread of the 30-year CMS rate over the two-year CMS rate minus 25 basis points, with a floor of zero and a cap of 15%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates from June 24, 2014 onward
|
| Pricing date: | June 22
|
| Settlement date: | June 24
|
| Underwriter: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | 4%
|
| Cusip: | 06048WCJ7
|
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