By Angela McDaniels
Tacoma, Wash., Dec. 6 – BofA Finance LLC priced $4 million of contingent income autocallable yield notes due Dec. 1, 2021 linked to the common stock of FedEx Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 9% per year if FedEx closes at or above its coupon barrier, 70% of its initial share price, on the observation date for that quarter.
Beginning in February 2020, the notes will be automatically called at par if FedEx closes at or above the initial share price on any observation date other than the final one.
If the notes are not called, the payout at maturity will be par unless the final share price is less than the threshold value, 66% of the initial share price, in which case investors will lose 1% for every 1% that the stock declines from the initial share price.
The notes are guaranteed by Bank of America Corp.
BofA Securities Inc. is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income autocallable yield notes
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| Underlying stock: | FedEx Corp. (NYSE: FDX)
|
| Amount: | $4 million
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| Maturity: | Dec. 1, 2021
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| Coupon: | 9% per year, payable quarterly if FedEx closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless final share price is less than threshold value, in which case 1% lose for every 1% that stock declines from initial share price
|
| Call: | Automatically at par beginning in February 2020 if FedEx closes at or above initial share price on any observation date other than final one
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| Initial share price: | $159.54 (closing share price on Nov. 25)
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| Coupon barrier: | $111.68, or 70% of initial share price
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| Threshold value: | $105.30, or 66% of initial share price
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| Pricing date: | Nov. 26
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| Settlement date: | Nov. 29
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| Underwriters: | BofA Securities, Inc.
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| Fees: | 2.25%
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| Cusip: | 09709TXV8
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