Published on 4/9/2018 in the Prospect News Structured Products Daily.
New Issue: BofA Finance sells $447,000 contingent income callable notes on indexes
By Marisa Wong
Morgantown, W.Va., April 9 – BofA Finance LLC priced $447,000 of contingent income issuer callable notes due March 29, 2033 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 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 at an annual rate of 10% if each index closes at or above its 75% coupon barrier on the determination date for that quarter.
The notes will be callable at par on any contingent interest payment date from March 29, 2019 to Dec. 29, 2032.
The payout at maturity will be par plus the final coupon unless any index finishes below its 60% threshold value, in which case investors will be fully exposed to any losses of the worst performing index.
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 index, Russell 2000 index and Euro Stoxx 50 index
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| Amount: | $447,000
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| Maturity: | March 29, 2033
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| Contingent coupon: | 10% annualized, payable each quarter that 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 value, in which case 1% loss for each 1% decline of worst performing index
|
| Call option: | At par plus any coupon due on any contingent interest payment date from March 29, 2019 to Dec. 29, 2032
|
| Initial levels: | 2,658.55 for S&P, 1,543.715 for Russell, 3,278.72 for Euro Stoxx
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| Coupon barriers: | 1,993.91 for S&P, 1,157.786 for Russell, 2,459.04 for Euro Stoxx; 75% of initial levels
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| Threshold values: 1,595.13 for S&P, 926.229 for Russell, 1,967.23 for Euro Stoxx; 60% of initial levels
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| Pricing date: | March 26
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| Settlement date: | March 29
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| Agent: | BofA Merrill Lynch
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| Fees: | 4%
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| Cusip: | 09709TDS7
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