By William Gullotti
Buffalo, N.Y., Dec. 23 – BofA Finance LLC priced $2.53 million of contingent income issuer callable yield notes due Dec. 5, 2023 linked to the performance of Southwest Airlines Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.2098% if the stock closes at or above its 70% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon otherwise due on any quarterly determination date after six months.
The payout at maturity will be par plus the final coupon unless the stock finishes below its 70% threshold level, in which case investors will be fully exposed to decline from the initial level.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the selling agent.
Issuer: | BofA Finance LLC
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Guarantor: | Bank of America Corp.
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Issue: | Contingent income issuer callable yield notes
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Underlying stock: | Southwest Airlines Co.
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Amount: | $2,531,000
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Maturity: | Dec. 5, 2023
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Coupon: | 9.2098% annualized rate, payable quarterly if the stock closes at or above its coupon barrier on observation date for that period
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Price: | Par
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Payout at maturity: | If the stock finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline from initial level
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Call option: | At par plus any coupon otherwise due on any quarterly determination date after six months
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Initial level: | $44.40
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Coupon barrier: | $31.08; 70% of initial levels
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Downside threshold: | $31.08; 70% of initial levels
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Pricing date: | Nov. 30
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Settlement date: | Dec. 3
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Selling agent: | BofA Securities, Inc.
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Fees: | 1.75%
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Cusip: | 09709UWL8
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