By Wendy Van Sickle
Columbus, Ohio, March 2 – BofA Finance, LLC priced $1.93 million of callable capped notes due Feb. 28, 2025 linked to the 30-year Constant Maturity Swap rate and the two-year CMS 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 8.5% for the first 18 months. Beginning Aug. 28, 2019, the interest rate will be 9 times the spread of the 30-year swap rate over the two-year swap rate, subject to a maximum interest rate of 9% per year and a minimum rate of zero. Interest will be payable monthly.
Beginning Aug. 28, 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.
| Issuer: | BofA Finance, LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Callable capped notes
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| Underlying: | 30-year and two-year Constant Maturity Swap rates
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| Amount: | $1,929,000
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| Maturity: | Feb. 28, 2025
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| Coupon: | 8.5% for first 18 months; beginning Aug. 28, 2019, 9 times spread of 30-year CMS rate over two-year CMS rate, capped at 9% and floor of zero; payable quarterly
|
| Price: | Variable
|
| Payout at maturity: | Par
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| Call option: | At par on any quarterly interest payment date beginning Aug. 28, 2019
|
| Pricing date: | Feb. 26
|
| Settlement date: | Feb. 28
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | Up to 5%
|
| Cusip: | 09709TDB4
|
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