By Angela McDaniels
Tacoma, Wash., Aug. 7 – BofA Finance LLC priced $712,000 of floating-rate commodity-linked notes due Sept. 11, 2018 linked to the S&P GSCI Index Total Return, according to an FWP filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
The interest rate is one-month Libor minus 11 basis points, subject to a minimum rate of zero. The rate resets monthly, and interest is payable at maturity.
The payout at maturity will be par plus 300% of the sum of the index return minus the investor fee minus the Treasury rate charge. The notes are not principal protected, so the payout will be less than par if the index return is negative.
The investor fee is 0.15% per year and accrues daily, and the Treasury rate charge accrues at a per-year rate equal to the three-month Treasury bill auction rate.
The notes are putable at any time, subject to a minimum redemption amount of $100,000. The notes will be automatically called if the index closes at or below the lower mandatory redemption trigger level, 85% of the initial index level.
BofA Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Commodity-linked notes
|
| Underlying index: | S&P GSCI Index Total Return
|
| Amount: | $712,000
|
| Maturity: | Sept. 11, 2018
|
| Coupon: | One-month Libor minus 11 bps, subject to minimum of zero; resets monthly; payable at maturity
|
| Price: | Par
|
| Payout at maturity: | Par plus 300% of sum of index return minus investor fee (0.15% per year) minus Treasury rate charge (per-year rate equal to three-month Treasury bill auction rate)
|
| Put option: | At any time, subject to minimum redemption amount of $100,000
|
| Call: | Automatically if index closes at or below 85% of initial index level
|
| Pricing date: | Aug. 4
|
| Settlement date: | Aug. 11
|
| Agent: | BofA Merrill Lynch
|
| Fees: | None
|
| Cusip: | 09709TBA8
|
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