Bank of America to price 20-year capped notes linked to CMS rates

By Angela McDaniels

Tacoma, Wash., Aug. 19 - Bank of America Corp. plans to price capped notes due Aug. 30, 2033 linked to the 30-year Constant Maturity Swap rate and the two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.

The initial interest rate will be 10%. Beginning Aug. 30, 2014, the interest rate will be (a) four times (b) the 30-year CMS rate minus the two-year CMS rate minus 0.25%, subject to a maximum rate of 10% per year and a minimum rate of zero. Interest will be payable quarterly.

The payout at maturity will be par.

BofA Merrill Lynch is the agent.

The notes will settle Aug. 30.

The Cusip number is 06048WPD6.

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