Published on 12/19/2019 in the Prospect News Structured Products Daily.
New Issue: BofA prices $617,000 contingent income callable yield notes on S&P, Dow, Russell
By Wendy Van Sickle
Columbus, Ohio, Dec. 19 – BofA Finance LLC priced $617,000 of contingent income issuer callable yield notes due Dec. 21, 2026 linked to the least performing of the S&P 500 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 quarterly coupon at an annual rate of 7.35% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
After one year, the notes are callable at par plus any contingent coupon on any quarterly observation date other than the final one.
The payout at maturity will be par plus any coupon due unless any index finishes below its 70% 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 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 indexes: | S&P 500, Dow Jones industrial average, Russell 2000
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| Amount: | $617,000
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| Maturity: | Dec. 21, 2026
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| Coupon: | 7.35% annual rate, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
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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 one year, at par plus any coupon on any quarterly observation date other than final one
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| Initial levels: | 3,191.45 for S&P, 28,235.89 for Dow, 1,649.939 for Russell
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| Coupon barriers: | 2,234.02 for S&P, 19,765.12 for Dow, 1,154.957 for Russell, 70% of initial levels
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| Downside thresholds: | 2,234.02 for S&P, 19,765.12 for Dow, 1,154.957 for Russell, 70% of initial levels
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| Pricing date: | Dec. 16
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| Settlement date: | Dec. 19
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 1.35%
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| Cusip: | 09709TYN5
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