Published on 2/6/2020 in the Prospect News Structured Products Daily.
New Issue: BofA sells $932,000 contingent income autocallable yield notes on ETFs
By Wendy Van Sickle
Columbus, Ohio, Feb. 6 – BofA Finance LLC priced $932,000 of contingent income autocallable yield notes due Feb. 3, 2025 linked to the worst performing of the Utilities Select Sector SPDR fund, the Energy Select Sector SPDR fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.15% if each underlying asset closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par on if each asset closes above its initial level on any quarterly determination date after six months.
The payout at maturity will be par unless any asset finishes below its 60% threshold level, in which case investors will be fully exposed to any losses of the worst performing asset.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent.
Issuer: | BofA Finance LLC
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Guarantor: | Bank of America Corp.
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Issue: | Contingent income autocallable yield notes
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Underlying assets: | Utilities Select Sector SPDR fund, Energy Select Sector SPDR fund and Financial Select Sector SPDR fund
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Amount: | $932,000
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Maturity: | Feb. 3, 2025
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Coupon: | 8.15% annualized, payable quarterly if each asset closes at or above its coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | If each asset finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing asset
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Call: | At par if each asset closes above its initial level on any quarterly determination date after six months
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Initial levels: | $54.72 for Utilities, $30.22 for Energy, $68.65 for Financial
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Coupon barriers: | $38.30 for Utilities, $21.15 for Energy, $48.06 for Financial, 70% of initial levels
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Downside thresholds: | $32.83 for Utilities, $18.13 for Energy, $41.49 for Financial, 60% of initial levels
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Pricing date: | Jan. 29
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Settlement date: | Jan. 31
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Underwriter: | BofA Securities, Inc.
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Fees: | 3.25%
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Cusip: | 09709TZD6
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