By Marisa Wong
Los Angeles, May 23 – BofA Finance LLC raised $530.45 million from the sale of 0.6% cash-settled equity-linked notes due May 25, 2027 linked to the common stock of Merck & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
BofA Finance priced $515 million principal amount of notes at 103 for total proceeds of $530.45 million.
The payout at maturity will be the greater of par of $1,000 and the alternative settlement amount. The alternative settlement amount is the product of $1,000 times the quotient of the final stock price divided by the 114% threshold price. In other words, investors will not receive any positive return at maturity unless the stock appreciates by more than 14%.
The final stock price will be the average of the closing share prices on the 10 trading days ending May 20, 2027.
BofA Securities, Inc. is the underwriter.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Cash-settled equity-linked notes
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| Underlying stock: | Merck & Co., Inc. (NYSE: MRK)
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| Principal amount: | $515 million
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| Proceeds: | $530.45 million
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| Maturity: | May 25, 2027
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| Coupon: | 0.6%, payable semiannually
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| Price: | 103
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| Payout at maturity: | Greater of (i) $1,000 and (ii) product of $1,000 times the quotient of the final stock price divided by the threshold price
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| Initial price: | $92.07415 (average of the VWAP of the stock on each of the two consecutive trading days beginning on and including the pricing date)
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| Threshold price: | $104.965, 114% of initial price
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| Final price: | Average of closing share prices on 10 trading days ending May 20, 2027
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| Pricing date: | May 18
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| Settlement date: | May 25
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| Agent: | BofA Securities, Inc.
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| Fees: | None
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| Cusip: | 09709UV70
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