Published on 2/14/2019 in the Prospect News Structured Products Daily.
New Issue: BofA prices $4.24 million contingent income autocalls on two funds, two stocks
By Wendy Van Sickle
Columbus, Ohio, Feb. 14 – BofA Finance LLC priced $4.24 million of contingent income issuer autocallable notes due Feb. 15, 2022 linked to the worst performing of the Financial Select Sector SPDR fund, the Energy Select Sector SPDR fund and the common stocks of Caterpillar Inc. and Nvidia Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 18.75% if each underlying asset closes at or above its 65% threshold value on the observation date for that quarter.
The notes will be called at par if each underlying component closes at or above 90% of its initial level on any determination date.
The payout at maturity will be par unless any asset finishes below its threshold value, 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 Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer autocallable notes
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| Underlying assets: | Energy Select Sector SPDR fund, Financial Select Sector SPDR fund, Caterpillar Inc. and Nvidia Corp.
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| Amount: | $4,242,000
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| Maturity: | Feb. 15, 2022
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| Coupon: | 18.75% annualized, payable quarterly if each asset closes at or above threshold value on observation date for that quarter
|
| Price: | Par
|
| Call: | At par if each component closes at or above 90% of its initial level on any review date
|
| Payout at maturity: | If each asset finishes at or above threshold value, par; otherwise, 1% loss for each 1% decline of worst performing asset
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| Initial levels: | $132.67 for Caterpillar, $151.17 for Nvidia, $64.04 for energy fund, $26.13 for financial fund
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| Threshold value: | $86.24 for Caterpillar, $98.26 for Nvidia, $41.63 for energy fund, $16.98 for financial fund, 65% of initial levels
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| Pricing date: | Feb. 12
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| Settlement date: | Feb. 14
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| Underwriter: | BofA Merrill Lynch
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| Fees: | 4%
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| Cusip: | 09709TNE7
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