Bank of America plans dual range accrual notes tied to Libor, S&P 500

By Angela McDaniels

Tacoma, Wash., Aug. 2 - Bank of America Corp. plans to price dual range accrual notes due September 2020 linked to Libor and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly and will equal 8% per year multiplied by the proportion of days on which Libor is 6.5% or less and the index closes at or above the reference level, which is expected to be 70% to 85% of the initial index level and will be set at pricing.

The payout at maturity will be par.

Beginning in September 2015, the notes will be callable at par on any interest payment date.

Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.

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