By Jennifer Chiou
New York, March 3 - Bank of America Corp. priced $5 million of 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.
Issuer: | Bank of America Corp.
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Issue: | Capped notes
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Underlyings: | 30-year and five-year Constant Maturity Swap rates
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Amount: | $5 million
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Maturity: | Feb. 28, 2024
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Coupon: | 8% for one year; after that, at 4 times the spread of 30-year CMS rate over the five-year CMS rate minus 25 basis points, capped at 8% with floor of 0%; payable quarterly
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Price: | Variable
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Payout at maturity: | Par
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Pricing date: | Feb. 26
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Settlement date: | Feb. 28
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Agent: | BofA Merrill Lynch
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Fees: | 3%
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Cusip: | 06048WPM6
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