Published on 2/12/2019 in the Prospect News Structured Products Daily.
New Issue: BofA prices $435,000 contingent income callable notes linked to indexes, energy fund
By Angela McDaniels
Tacoma, Wash., Feb. 12 – BofA Finance LLC priced $435,000 of contingent income issuer callable notes due Feb. 11, 2022 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
Each quarter, the notes pay a contingent coupon at the rate of 7.1% per year if each underlier closes at or above its threshold value, 60% of its initial level, on the observation date for that quarter.
The payout at maturity will be par unless any underlier finishes below its threshold value, in which case investors will lose 1% for every 1% that the least-performing underlier declines from its initial level.
Beginning Feb. 11, 2020, the notes will be callable at par on any interest payment date.
BofA Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Contingent income issuer callable notes
|
| Underliers: | S&P 500 index, Russell 2000 index and Energy Select Sector SPDR fund
|
| Amount: | $435,000
|
| Maturity: | Feb. 11, 2022
|
| Coupon: | Each quarter, notes pay contingent coupon at rate of 7.1% per year if each underlier closes at or above threshold value on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any underlier finishes below threshold value, in which case 1% loss for every 1% that least-performing underlier declines from initial level
|
| Call option: | Beginning Feb. 11, 2020, notes will be callable at par on any interest payment date
|
| Initial level: | 2,707.88 for S&P 500, 1,506.394 for Russell 2000 and $62.94 for fund
|
| Threshold values: | 1,624.73 for S&P 500, 903.836 for Russell 2000 and $37.76 for fund; 60% of initial levels
|
| Pricing date: | Feb. 8
|
| Settlement date: | Feb. 13
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2.25%
|
| Cusip: | 09709TNB3
|
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