By Angela McDaniels
Tacoma, Wash., Sept. 29 – BofA Finance LLC priced $1 million of contingent income issuer callable notes due Sept. 29, 2027 linked to the least performing of the S&P 500 index and the Russell 2000 index, 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 of 7.5% per year if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that quarter.
The payout at maturity will be par unless either index finishes below its threshold value, 60% of its initial level, in which case investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.
Beginning Sept. 29, 2018, the notes will be callable at par on any interest payment date.
BofA Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable notes
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| Underlying indexes: | S&P 500 and Russell 2000
|
| Amount: | $1 million
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| Maturity: | Sept. 29, 2027
|
| Coupon: | 7.5% per year, payable quarterly if each index closes at or above its coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless either index finishes below threshold value, in which case 1% loss for every 1% that lesser-performing index declines from initial level
|
| Call option: | Beginning Sept. 29, 2018, notes are callable at par on any interest payment date
|
| Initial index levels: | 2,496.84 for S&P 500 and 1,456.863 for Russell 2000
|
| Coupon barriers: | 1,872.63 for S&P 500 and 1,092.647 for Russell 2000; 75% of initial levels
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| Threshold values: | 1,498.10 for S&P 500 and 874.118 for Russell 2000; 60% of initial levels
|
| Pricing date: | Sept. 26
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| Settlement date: | Sept. 29
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| Agent: | BofA Merrill Lynch
|
| Fees: | 5%
|
| Cusip: | 09709TBD2
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