Bank of America plans callable non-inversion notes on CMS rates

By Toni Weeks

San Diego, March 17 - Bank of America Corp. plans to price callable non-inversion notes due April 8, 2026 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 5% for the first two years. After that, the rate will be 7% per year multiplied by the proportion of days on which the spread of the 30-year CMS rate over the two-year CMS rate is greater than 0%. Interest will be payable quarterly.

The payout at maturity will be par.

The notes are callable at par on any quarterly interest payment date beginning April 8, 2013.

The notes (Cusip: 06048WFS4) will settle on April 8.

Merrill Lynch, Pierce, Fenner & Smith Inc. will act as agent.

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