BofA to price 3.5-year callable capped notes tied to ICE swap rates

By Sarah Lizee

Olympia, Wash., April 6 – BofA Finance, LLC plans to price issuer callable capped notes due Oct. 27, 2021 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 will be guaranteed by Bank of America Corp.

The interest rate will be fixed at 3.5% initially. Beginning April 27, 2019, the interest rate will be 11 times the spread of the 30-year swap rate over the two-year swap rate, subject to a maximum interest rate of 8% per year and a minimum rate of zero. Interest will be payable quarterly.

Beginning April 27, 2019, the notes will be callable in whole at par on any quarterly call date.

The payout at maturity will be par.

BofA Merrill Lynch is the underwriter.

The notes will price on April 25 settle on April 27.

The Cusip number is 09709TEH0.

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