Published on 3/7/2018 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.31 million 10% 15-year contingent income callables tied to three indexes
By Wendy Van Sickle
Columbus, Ohio, March 7 – BofA Finance LLC priced $1.31 million of contingent income issuer callable notes due Feb. 28, 2033 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 10% if each index closes at or above its 75% coupon barrier on the quarterly determination date.
The notes are callable at par on any interest payment date after one year.
The payout at maturity will be par plus the coupon unless any index finishes below its 60% threshold, in which case investors will be fully exposed to any losses of the worst performing index.
The notes will be guaranteed by Bank of America Corp.
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 indexes: | S&P 500, Russell 2000 and Euro Stoxx 50
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| Amount: | $1,307,000
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| Maturity: | Feb. 28, 2033
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| Contingent coupon: | 10% annualized, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus coupon unless any index finishes below threshold, in which case 1% loss for each 1% decline of worst performing index
|
| Call option: | At par plus any coupon on any contingent interest payment date beginning Feb. 28, 2019
|
| Initial levels: | 2,779.6 for S&P, 1,559.332 for Russell and 3,463.18 for Stoxx
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| Coupon barriers: | 2,084.70 for S&P, 1,169.499 for Russell and 2,678.09 for Stoxx; 75% of initial levels
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| Thresholds: | 1,667.76 for S&P, 935.599 for Russell and 2,597.39 for Stoxx; 60% of initial levels
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| Pricing date: | Feb. 26
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| Settlement date: | Feb. 28
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| Agent: | BofA Merrill Lynch
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| Fees: | 4%
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| Cusip: | 09709TDA6
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