Published on 11/21/2019 in the Prospect News Structured Products Daily.
New Issue: BofA sells $7.17 million of trigger callable contingent yield notes on Russell, Stoxx
By Wendy Van Sickle
Columbus, Ohio, Nov. 21 – BofA Finance LLC priced $7.17 million of trigger callable contingent yield notes due Nov. 20, 2024 linked to the least performing of 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 Bank of America Corp.
Each quarter, the notes pay a contingent coupon of 6.6% per year if each index’s closing level is at or above its coupon barrier, 70% of its initial level, on the observation date that quarter.
After one year, the notes will be callable at par of $10 plus any coupon on each quarterly observation date other than the final one.
If the notes are not called and each index finishes at or above its trigger level, 70% of its initial level, the payout at maturity will be par plus the coupon. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
UBS Financial Services Inc. and BofA Securities, Inc. are the underwriters.
Issuer: | BofA Finance LLC
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Guarantor: | Bank of America Corp.
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Issue: | Trigger callable contingent yield notes with daily coupon observation
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Underlying indexes: | Euro Stoxx 50 and Russell 2000
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Amount: | $7,165,750
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Maturity: | Nov. 17, 2024
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Coupon: | 6.6% per year, payable quarterly if each index closes at or above its coupon barrier on observation date that quarter
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Price: | Par of $10
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Payout at maturity: | If each index finishes at or above trigger level, par plus coupon; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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Call option: | After one year at par plus any coupon on each quarterly observation date other than final one
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Initial levels: | 1,596.454 for Russell, 3,711.61 for Stoxx
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Coupon barriers: | 1,117.518 for Russell, 2,598.13 for Stoxx; 70% of initial levels
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Trigger levels: | 1,117.518 for Russell, 2,598.13 for Stoxx; 70% of initial levels
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Pricing date: | Nov. 15
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Settlement date: | Nov. 20
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Agents: | UBS Financial Services Inc. and BofA Securities, Inc.
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Fees: | 2.5%
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Cusip: | 05591G603
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