Published on 11/28/2017 in the Prospect News Structured Products Daily.
New Issue: BofA prices $2.65 million 10-year contingent income callables on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Nov. 28 – BofA Finance LLC priced $2.65 million of contingent income issuer callable notes due Nov. 22, 2032 linked to the worst performing of the Russell 2000 index and the S&P 500 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 8% if each index closes at or above its 75% coupon barrier on the quarterly determination date.
The notes are callable at par on any interest payment date after a year.
The payout at maturity will be par plus the final contingent coupon unless either 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 will be guaranteed by Bank of America Corp.
BofA Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable notes
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| Underlying indexes: | S&P 500, Russell 2000
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| Amount: | $2,654,000
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| Maturity: | Nov. 22, 2032
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| Contingent coupon: | 8% per year, payable quarterly if each index closes at or above threshold level on observation date for that quarter
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par plus final coupon unless final level of least performing index is less than threshold, in which case 1% loss for each 1% decline of least performing index from initial level
|
| Call option: | At par plus any coupon on any contingent interest payment date after one year
|
| Initial index levels: | 2,582.14 for S&P, 1,503.396 for Russell
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| Coupon barriers: | 1,936.61 for S&P, 1,127.547 for Russell; 75% of initial levels
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| Threshold levels: | 1,549.28 for S&P, 902.083 for Russell; 60% of initial levels
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| Pricing date: | Nov. 20
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| Settlement date: | Nov. 22
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| Agent: | BofA Merrill Lynch
|
| Fees: | 4.5%
|
| Cusip: | 09709TBZ3
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