Published on 7/9/2018 in the Prospect News Structured Products Daily.
New Issue: BofA prices $364,000 contingent income callables on indexes
By Wendy Van Sickle
Columbus, Ohio, July 9 – Bank of America Corp. priced $364,000 of contingent income callable securities due Jan. 4, 2021 linked to the least performing of the FTSE 100 index, the Russell 2000 index and the Nikkei Stock Average index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by BofA Finance LLC.
The notes will pay a contingent quarterly coupon at an annual rate of 8.6% if each index closes at or above its 70% downside threshold on the observation date for that quarter.
After six months, the notes will be callable at par on any contingent payment date other than the final date.
The payout at maturity will be par unless any index finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
BofA Merrill Lynch is the underwriter.
| Issuer: | Bank of America Corp.
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| Guarantor: | BofA Finance LLC
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| Issue: | Contingent income callable securities
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| Underlying indexes: | FTSE 100 index, Russell 2000 index and Nikkei Stock Average index
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| Amount: | $364,000
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| Maturity: | Jan. 4, 2021
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| Coupon: | 8.6% annualized, payable quarterly if each index closes at or above 70% downside threshold on review date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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| Call option: | At par on any contingent payment date after six months other than the final date
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| Initial levels: | 1,668.527 for Russell, 7,537.92 for FTSE and 22,342.00 for Nikkei
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| Downside thresholds: | 1,167.969 for Russell, 5,276.54 for FTSE and 15,639.4 for Nikkei, 70% of initial levels
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| Pricing date: | June 26
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| Settlement date: | June 29
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| Agent: | BofA Merrill Lynch
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| Fees: | 1.75%
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| Cusip: | 09709TES6
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