By Wendy Van Sickle
Columbus, Ohio, March 2 – BofA Finance, LLC priced $1.75 million of callable capped notes due Feb. 28, 2025 linked to the 10-year Constant Maturity Swap rate and the two-year CMS rate, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Bank of America Corp.
The interest rate will be fixed at 5% for the first year. Beginning Feb. 28, 2019, the interest rate will be 12 times the amount by which the 10-year swap rate exceeds the two-year swap rate, subject to a minimum of zero and a maximum interest rate of 9% per year. Interest will be payable quarterly.
Beginning Feb. 28, 2019, the notes will be callable in whole at par on any interest payment date.
The payout at maturity will be par.
BofA Merrill Lynch is the underwriter.
| Issuer: | BofA Finance, LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Callable capped notes
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| Underlying: | 10-year and two-year Constant Maturity Swap rates
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| Amount: | $1.75 million
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| Maturity: | Feb. 28, 2025
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| Coupon: | 5% for first year; beginning Feb. 28, 2019, 12 times spread of 10-year CMS rate over two-year CMS rate, capped at 9% and floor of zero; payable quarterly
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| Price: | Variable
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| Payout at maturity: | Par
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| Call option: | At par on any quarterly interest payment date beginning Feb. 28, 2019
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| Pricing date: | Feb. 26
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| Settlement date: | Feb. 28
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| Agent: | Bank of America Merrill Lynch
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| Fees: | Up to 5%
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| Cusip: | 09709TDE8
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