Bank of America plans capped notes linked to 30-, five-year CMS rates

By Susanna Moon

Chicago, Feb. 21 - Bank of America Corp. plans to price capped notes due Feb. 28, 2024 linked to the 30-year Constant Maturity Swap rate and the five-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be fixed at 8% for the first year. After that, it will accrue at 4 times the spread of 30-year CMS rate over the five-year CMS rate minus 25 basis points, up to a maximum rate of 8%. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par.

BofA Merrill Lynch is the agent.

The notes will price on and settle on

The Cusip number is 06048WPM6.

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