Published on 6/19/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $11.22 contingent income callable yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, June 19 – BofA Finance LLC priced $11.22 of contingent income issuer callable yield notes due June 21, 2022 linked to the least performing of the S&P 500 index, Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly monthly coupon at an annual rate of 10.25% if each index closes at or above its coupon barrier, 60% of its initial level, on the observation date for that period.
After six months, the notes are callable at par plus the contingent coupon on any observation date other than the final one.
The payout at maturity will be par plus the coupon unless any index finishes below its 60% threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the selling agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable yield notes
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| Underlying indexes: | S&P 500, Dow Jones industrial average, Russell 2000
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| Amount: | $11,221,000
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| Maturity: | June 21, 2022
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| Coupon: | 10.25% annual rate, payable quarterly if each index closes at or above coupon barrier on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par plus coupon; otherwise 1% loss for each 1% decline of worst performing index
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| Call option: | After six months, at par plus coupon on any observation date other than final one
|
| Initial levels: | 3,124.74 for S&P, 26,289.98 for Dow, 1,452.26 for Russell
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| Coupon barriers: | 1,874.84 for S&P, 15,773.99 for Dow, 871.84 for Russell, 60% of initial levels
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| Downside thresholds: | 1,874.84 for S&P, 15,773.99 for Dow, 871.84 for Russell, 60% of initial levels
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| Pricing date: | June 16
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| Settlement date: | June 19
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 1.5%
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| Cusip: | 09709TG47
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