Published on 9/11/2018 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1 million contingent income callables on three indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 11 – Bank of America Corp. priced $1 million of contingent income callable securities due Aug. 31, 2033 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 of 9% if each index closes at or above its 75% coupon threshold on the observation date for that quarter.
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 50% 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: | $1 million
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Maturity: | Aug. 31, 2033
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Coupon: | Payable quarterly at annualized rate of 9% if each index closes at or above downside threshold on review date
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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: | 3,456.13 for Stoxx, 1,734.749 for Russell, 2,914.04 for S&P
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Coupon thresholds: | 2,592.1 for Stoxx, 1,301.062 for Russell, 2,185.53 for S&P, 75% of initial levels
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Downside thresholds: | 1,728.07 for Stoxx, 867.375 for Russell, 1,457.02 for S&P, 50% of initial levels
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Pricing date: | Aug. 29
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Settlement date: | Aug. 31
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Agent: | BofA Merrill Lynch
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Fees: | 5%
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Cusip: | 09709TGB1
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