By Wendy Van Sickle
Columbus, Ohio, Aug. 2 – BofA Finance, LLC priced $2 million of issuer callable notes due July 28, 2032 linked to the difference between the 30-year U.S. dollar ICE swap rate and the two-year U.S. dollar ICE swap rate, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
The interest rate will be 7% initially. Starting July 28, 2024, the interest rate will be 10 times the spread of the 30-year swap rate over the two-year swap rate, subject to a minimum rate of 2%. Interest will be payable quarterly.
Beginning July 28, 2023, the notes will be callable in whole at par on any quarterly interest payment date.
The payout at maturity will be par.
BofA Securities is the selling agent.
| Issuer: | BofA Finance, LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Issuer callable notes
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| Underlying rates: | 30-year and two-year U.S. dollar ICE swap rates
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| Amount: | $2 million
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| Maturity: | July 28, 2032
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| Coupon: | 7% initially; beginning July 28, 2023, 10 times the spread of the 30-year swap rate over the two-year swap rate, subject to a 2% floor; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
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| Call option: | At par on any quarterly interest payment date beginning July 28, 2024
|
| Pricing date: | July 26
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| Settlement date: | July 28
|
| Agent: | BofA Securities
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| Fees: | 1.5%
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| Cusip: | 09709T6Q9
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