By Wendy Van Sickle
Columbus, Ohio, July 5 – BofA Finance LLC priced $5.25 million of contingent income issuer callable notes due June 29, 2020 linked to the worst performing of the Energy Select Sector SPDR fund, the Financial Select Sector SPDR fund and Consumer Staples Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
Each quarter, the notes will pay a contingent coupon at an annual rate of 8.5% if each ETF closes at or above its 70% threshold value on the determination date for that quarter.
The notes will be callable at par on any contingent interest payment date after one year.
The payout at maturity will be par plus the final coupon unless any ETF finishes below its 70% threshold value, in which case investors will be fully exposed to any losses of the worst performing ETF.
BofA Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable notes
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| Underlying funds: | Energy Select Sector SPDR fund, Financial Select Sector SPDR fund and Consumer Stapels Sector SPDR fund
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| Amount: | $5.25 million
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| Maturity: | June 29, 2020
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| Contingent coupon: | 8.5% annualized, payable quarterly if each fund closes at or above threshold level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus coupon unless any fund finishes below threshold, in which case 1% loss for each 1% decline of worst performing fund
|
| Call option: | At par plus any coupon due on any contingent interest payment date after a year
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| Initial levels: | $73.64 for Energy, $26.78 for Financial and $51.89 for Consumer
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| Thresholds: | $52.55 for Energy, $18.75 for Financial and $36.32 for Consumer; 70% of initial levels
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| Pricing date: | June 25
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| Settlement date: | June 28
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| Agent: | BofA Merrill Lynch
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| Fees: | 1.5%
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| Cusip: | 09709TFF3
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