Published on 11/6/2018 in the Prospect News Structured Products Daily.
New Issue: BofA sells $333,000 of 10.35% contingent income callables on indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 6 – BofA Finance LLC priced $333,000 of contingent income issuer callable notes due Oct. 31, 2033 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 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 annual rate of 10.35% if each underlying index closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes are callable at par on any determination date after one year.
The payout at maturity will be par unless any index finishes below its 60% threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
The notes are guaranteed by Bank of America Corp.
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 assets: | Russell 2000 index, Nasdaq-100 index and Euro Stoxx 50 index
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| Amount: | $333,000
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| Maturity: | Oct. 31, 2033
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| Coupon: | 10.35% annualized, payable quarterly if each index closes at or above its 75% coupon barrier on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call option: | At par on any interest payment date beginning Oct. 31, 2019
|
| Initial levels: | 1,483.821 for Russell, 6,852.404 for Nasdaq and 3,134.89 for Stoxx
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| Coupon barriers: | 1,112.866 for Russell, 5,139.303 for Nasdaq and 2,351.17 for Stoxx, 75% of initial levels
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| Downside thresholds: | 890.293 for Russell, 4,111.442 for Nasdaq and 1,880.93 for Stoxx, 60% of initial levels
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| Pricing date: | Oct. 26
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| Settlement date: | Oct. 31
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| Underwriter: | BofA Merrill Lynch
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| Fees: | 4.25%
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| Cusip: | 09709TKN0
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