Published on 2/24/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $500,000 contingent income callable yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 24 – BofA Finance LLC priced $500,000 of contingent income issuer callable yield notes due Feb. 24, 2025 linked to the least performing of the Nasdaq-100 index, Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 6.9% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that month.
After six months, the notes are callable at par plus the contingent coupon on any monthly observation date other than the final one.
The payout at maturity will be par plus any coupon due unless any 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 are guaranteed by Bank of America Corp.
BofA Securities, Inc. 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 yield notes
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| Underlying indexes: | Nasdaq-100, Dow Jones industrial average, Russell 2000
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| Amount: | $500,000
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| Maturity: | Feb. 24, 2025
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| Coupon: | 6.9% annual rate, payable monthly if each index closes at or above coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par plus any coupon due; otherwise 1% loss for each 1% decline of worst performing index
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| Call option: | After six months, at par plus coupon on any monthly observation date other than final one
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| Initial levels: | 9,718.727 for Nasdaq, 29,348.03 for Dow, 1,692.573 for Russell
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| Coupon barriers: | 6,803.109 for Nasdaq, 20,543.62 for Dow, 1,184.801 for Russell, 70% of initial levels
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| Downside thresholds: | 5,831.236 for Nasdaq, 17,608.82 for Dow, 1,015.544 for Russell, 60% of initial levels
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| Pricing date: | Feb. 19
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| Settlement date: | Feb. 24
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| Agent: | BofA Securities, Inc.
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| Fees: | 0.6%
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| Cusip: | 09709TA35
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