By Susanna Moon
Chicago, July 12 - Bank of America Corp. priced $13.5 million of callable capped notes due July 12, 2030 linked to the 30-year Constant Maturity Swap rate and two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 14% for the first year. After that, the rate will be 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 of 14%. 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 July 12, 2011.
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: | $13.5 million
|
Maturity: | July 12, 2030
|
Coupon: | 14% for the first year; beginning July 12, 2011, four times the difference between 30-year and two-year CMS rates less 25 bps, capped at 14% with floor of zero; payable quarterly
|
Price: | Par
|
Payout at maturity: | Par
|
Call option: | At par on interest payment dates after one year
|
Pricing date: | July 8
|
Settlement date: | July 12
|
Underwriter: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
Fees: | 4%
|
Cusip: | 06048WCS7
|
© 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.