Published on 10/4/2019 in the Prospect News Structured Products Daily.
New Issue: BofA sells $525,000 contingent income callable yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 4 – BofA Finance LLC priced $525,000 of contingent income issuer callable yield notes due Sept. 30, 2022 linked to the worst performing of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 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 7.65% if each underlying index closes at or above its 65% coupon barrier on the observation date for that quarter.
The notes are callable at par on any determination date after six months.
The payout at maturity will be par 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
|
| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable yield notes
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| Underlying assets: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index
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| Amount: | $525,000
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| Maturity: | Sept. 30, 2022
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| Coupon: | 7.65% annualized, payable quarterly if each index closes at or above its coupon barrier on observation 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 interest payment date beginning April 1, 2020
|
| Initial levels: | 26,820.25 for Dow, 1,520.476 for Russell, 7,681,579 for Nasdaq
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| Coupon barriers: | 17,433.16 for Dow, 988.309 for Russell, 4,993.026 for Nasdaq, 65% of initial levels
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| Downside thresholds: | 16,092.15 for Dow, 912.286 for Russell, 4,608.947 for Nasdaq, 60% of initial levels
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| Pricing date: | Sept. 27
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| Settlement date: | Oct. 2
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| Underwriter: | BofA Securities, Inc.
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| Fees: | 0.65%
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| Cusip: | 09709TVK4
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