Bank of America plans six-year floating-rate notes on CMS rates

By Jennifer Chiou

New York, Oct. 19 - Bank of America Corp. plans to price floating-rate notes due November 2017 linked to the 10-year and two-year Constant Maturity Swap rates, according to an FWP with the Securities and Exchange Commission.

The notes will bear interest at 8% for the first year. After that, the rate will accrue at 3.4 to 4.4 times the spread of the 10-year CMS rate over the two-year CMS rate, up to a maximum coupon of 8%. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The floaters are callable at par on any quarterly interest payment date beginning in November 2012.

The notes are expected to price in October and settle in November.

Bank of America Merrill Lynch is the agent.

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