Bank of America plans 20-year callable capped notes tied to CMS rates

By Toni Weeks

San Diego, Nov. 9 - Bank of America Corp. plans to price callable capped notes due Nov. 21, 2031 linked to the two-year and 30-year Constant Maturity Swap Rates, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will bear interest at 12% for the first year. After that, the rate will accrue at 4.2 times the spread of the 30-year CMS rate over the two-year CMS rate, up to a maximum coupon of 12%. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The notes are callable at par on any quarterly interest payment date after one year.

The notes (Cusip: 06048WJH4) are expected to settle Nov. 21.

Bank of America Merrill Lynch will act as agent.

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