By Wendy Van Sickle
Columbus, Ohio, Nov. 12 – BofA Finance, LLC priced $2.5 million of issuer callable capped notes due Aug. 3, 2023 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 3.5% initially. Beginning Aug. 3, 2022, the interest rate will be 2.5 times the spread of the 30-year swap rate over the five-year swap rate minus 30 basis points, subject to a maximum rate of 8% and a minimum rate of 1%. Interest will be payable quarterly.
Beginning Aug. 3, 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: | $2.5 million
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Maturity: | Aug. 3, 2023
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Coupon: | 3.5% initially; beginning Aug. 3, 2022, 2.5 times spread of the 30-year swap rate minus the five-year swap rate minus 30 bps, subject to a 1% 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 Aug. 3, 2022
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Pricing date: | July 30
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Settlement date: | Aug. 3
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Agent: | BofA Merrill Lynch
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Fees: | 1.3%
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Cusip: | 09709T5X5
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