By William Gullotti
Buffalo, N.Y., May 20 – BofA Finance, LLC priced $2.2 million of callable capped notes due May 18, 2032 linked to the 30-year U.S. Dollar SOFR ICE swap rate and the two-year U.S. Dollar SOFR ICE swap 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% for the first two years. Beginning May 18, 2024, the interest rate will be 10 times the amount by which the 30-year swap rate exceeds the two-year swap rate, subject to a minimum of 2% and a maximum interest rate of 8% per year. Interest will be payable quarterly.
The notes will be callable at par on any interest payment date after one year.
The payout at maturity will be par.
BofA Merrill Lynch is the calculation agent with BofA Securities as selling agent.
| Issuer: | BofA Finance, LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Callable capped notes
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| Underlying: | 30-year U.S. Dollar SOFR ICE swap rate, two-year U.S. Dollar SOFR ICE swap rate
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| Amount: | $2,202,000
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| Maturity: | May 18, 2032
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| Coupon: | 8% for first two years; beginning May 18, 2024, 10 times the quantity of 30-year SOFR ICE rate minus the two-year SOFR ICE rate, capped at 8% with a floor of 2%; 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 after one year
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| Pricing date: | May 16
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| Settlement date: | May 18
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| Agents: | Merrill Lynch Capital Services, Inc. and BofA Securities
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| Fees: | 1.658%
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| Cusip: | 09709T6N6
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