By Sarah Lizee
Olympia, Wash., June 5 – BofA Finance LLC priced $2 million of callable dual range accrual notes due June 3, 2029 linked to the 30-year U.S. dollar ICE swap rate, the two-year U.S. dollar ICE swap rate and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
For each quarterly interest period, interest will accrue at a variable rate per year equal to the product of (a) the applicable base rate and (b) the number of days in the applicable interest period on which (i) the difference between the 30-year rate and the two-year rate is greater than or equal to the 0% accrual barrier and (ii) the closing level on any day of the of the index is greater than or equal to 80% of the starting value.
In no event will the interest rate be greater than the applicable base rate or less than 0%.
The base rate will be 5% until June 3, 2025, 6% until June 3, 2027 and 7% until June 3, 2029.
The payout at maturity will be par of $1,000 plus any coupon due.
The notes will be callable at par on any interest payment date beginning June 3, 2020.
BofA Merrill Lynch is the underwriter.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Callable dual range accrual notes
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| Underlyings: | 30-year U.S. dollar ICE swap rate, two-year U.S. dollar ICE swap rate and S&P 500 index
|
| Amount: | $2 million
|
| Maturity: | June 3, 2029
|
| Coupon: | Each quarterly period, interest will accrue at a variable rate per year equal to the product of (a) base rate and (b) number of days in applicable interest period on which (i) difference between the 30-year rate and the two-year rate is greater than or equal to the 0% accrual barrier and (ii) closing level on any day of the of the index is greater than or equal to 80% of the starting value; base rate will be 5% until June 3, 2025, 6% until June 3, 2027 and 7% until June 3, 2029; floor of 0%
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par plus any coupon due
|
| Call option: | At par on any interest payment date beginning June 3, 2020
|
| Initial index level: | 2,788.86
|
| Pricing date: | May 30
|
| Settlement date: | June 3
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| Agent: | BofA Merrill Lynch
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| Fees: | 2.25%
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| Cusip: | 09709TGY1
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