Published on 9/5/2018 in the Prospect News Structured Products Daily.
New Issue: BofA prices $3 million contingent income callables on three indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 5 – Bank of America Corp. priced $3 million of contingent income callable securities due Sept. 2, 2021 linked to the least performing of the S&P 500 index, the Euro Stoxx 50 index and the Russell 2000 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 annualized rate if each index closes at or above its 70% downside threshold on the observation date for that quarter. The rate is rate is 5.1% for the first year, 7.5% for the second year and 10% in the third year.
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 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: | Euro Stoxx 50 index, Russell 2000 index, S&P 500 index
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| Amount: | $3 million
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| Maturity: | Sept. 2, 2021
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| Coupon: | Payable quarterly at annualized rate if each index closes at or above downside threshold on review date; rate is 5.1% for first year, 7.5% for second year and 10% in third year
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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: | 3,447.57 for Stoxx, 1,728.422 for Russell, 2,897.52 for S&P
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| Downside thresholds: | 2,413.3 for Stoxx, 1,209.895 for Russell, 2,028.26 for S&P, 70% of initial levels
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| Pricing date: | Aug. 28
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| Settlement date: | Aug. 31
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| Agent: | BofA Merrill Lynch
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| Fees: | 3.925%
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| Cusip: | 09709TGD7
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