By Susanna Moon
Chicago, March 4 - Bank of America Corp. priced $2.68 million of callable capped notes due March 4, 2031 based on the 10-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
The coupon will be 11% for the first year. After that, the rate will be 4.5 times the spread of the 10-year CMS rate over the two-year CMS rate minus a strike of 25 basis points, up to a maximum of 11%. 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 March 4, 2014.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Callable capped notes
|
| Underlying rates: | 10-year and two-year Constant Maturity Swap rates
|
| Amount: | $2,675,000
|
| Maturity: | March 4, 2031
|
| Coupon: | 11% for first year; thereafter, 4.5 times spread of 10-year CMS rate over two-year CMS rate less 25 bps, capped at 11% and floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on interest payment dates after three years
|
| Pricing date: | March 2
|
| Settlement date: | March 4
|
| Underwriter: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | 4.5%
|
| Cusip: | 06048WFJ4
|
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