Published on 3/29/2019 in the Prospect News Structured Products Daily.
New Issue: BofA prices $954,000 contingent income callables on S&P, Russell
By Sarah Lizee
Olympia, Wash., March 29 – BofA Finance LLC priced $954,000 of contingent income issuer callable notes due April 1, 2024 linked to the worst performing of the S&P 500 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 will pay a contingent coupon at an annual rate of 5.4% if each index closes at or above its 60% coupon barrier on the determination date for that quarter.
The notes are callable at par on any contingent interest payment date after one year.
The payout at maturity will be par plus the final coupon, if any, 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.
BofA Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Guarantor: | BofA Finance LLC
|
| Issue: | Contingent income callable securities
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $954,000
|
| Maturity: | April 1, 2024
|
| Coupon: | 5.4% annualized, payable quarterly if each index closes at or above downside threshold on review date for that quarter
|
| Price: | Par
|
| 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 contingent payment date after one year
|
| Initial levels: | 2,818.46 for S&P, 1,528.166 for Russell
|
| Downside thresholds: | 1,691.08 for S&P, 916.900 for Russell, 60% of initial levels
|
| Pricing date: | March 26
|
| Settlement date: | March 28
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2.5%
|
| Cusip: | 09709TNR8
|
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