By Wendy Van Sickle
Columbus, Ohio, Aug. 11 – BofA Finance, LLC priced $12 million of issuer callable capped notes due July 30, 2031 linked to the difference between the 30-year U.S. dollar ICE swap rate and the five-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 3% initially. Beginning July 30, 2022, the interest rate will be 3 times the spread of the 30-year swap rate over the five-year swap rate, subject to a maximum rate of 8% and a minimum rate of zero. Interest will be payable quarterly.
Beginning July 30, 2022, the notes will be callable in whole at par on any quarterly interest payment date.
The payout at maturity will be par.
BofA Merrill Lynch is the underwriter.
Issuer: | BofA Finance, LLC
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Guarantor: | Bank of America Corp.
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Issue: | Issuer callable capped notes
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Underlying rates: | 30-year and five-year U.S. dollar ICE swap rates
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Amount: | $12 million
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Maturity: | July 30, 2031
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Coupon: | 3% initially; beginning July 30, 2022, 3 times the spread of the 30-year swap rate over the five-year swap rate, subject to a 0% floor and 8% cap; payable quarterly
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Price: | Par
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Payout at maturity: | Par
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Call option: | At par on any quarterly interest payment date beginning July 30, 2022
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Pricing date: | July 28
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Settlement date: | July 30
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Agent: | BofA Merrill Lynch
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Fees: | 1.25%
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Cusip: | 09709T5W7
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