By William Gullotti
Buffalo, N.Y., Oct. 27 – BofA Finance, LLC priced $4.19 million of callable capped notes due Sept. 30, 2041 linked to the 30-year Constant Maturity Swap rate and the five-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 6.5% for the first year. Beginning Sept. 30, 2022, the interest rate will be 10 times the amount by which the 30-year swap rate exceeds the five-year swap rate minus 30 basis points, subject to a minimum of zero and a maximum interest rate of 10% per year. Interest will be payable quarterly.
Beginning Sept. 30, 2022, the notes will be callable at par on any interest payment date.
The payout at maturity will be par.
BofA Merrill Lynch is the calculation agent with BofA Securities as selling agent.
| Issuer: | BofA Finance, LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Callable capped notes
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| Underlying: | 30-year and five-year Constant Maturity Swap rates
|
| Amount: | $4,185,000
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| Maturity: | Sept. 30, 2041
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| Coupon: | 6.5% for first year; beginning Sept. 30, 2022, 10 times the quantity of 30-year CMS rate minus five-year CMS rate minus 30 bps, capped at 10% and floor of zero; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par
|
| Call option: | At par on any quarterly interest payment date beginning Sept. 30, 2022
|
| Pricing date: | Sept. 28
|
| Settlement date: | Sept. 30
|
| Agents: | Merrill Lynch Capital Services, Inc. and BofA Securities
|
| Fees: | 5%
|
| Cusip: | 09709T6A4
|
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