Published on 2/10/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.1 million contingent income callable yield notes on indexes
By Sarah Lizee
Olympia, Wash., Feb. 10 – BofA Finance LLC priced $1.1 million of contingent income issuer callable yield notes due Aug. 2, 2023 linked to the least performing of the MSCI Emerging Markets index, Euro Stoxx 50 index and 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 8.45% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
After six months, the notes are callable at par plus the 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 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: | MSCI Emerging Markets index, Euro Stoxx 50 index and Russell 2000 index
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Amount: | $1.1 million
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Maturity: | Aug. 2, 2023
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Coupon: | 8.45% 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 six months, at par plus coupon on any quarterly observation date other than final one
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Initial levels: | 3,719.22 for Stoxx, 1,101.72 for EM, 1,658.314 for Russell
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Coupon barriers: | 2,603.45 for Stoxx, 771.20 for EM, 1,160.820 for Russell, 70% of initial levels
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Downside thresholds: | 2,603.45 for Stoxx, 771.20 for EM, 1,160.820 for Russell, 70% of initial levels
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Pricing date: | Jan. 28
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Settlement date: | Jan. 31
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Agent: | BofA Securities, Inc.
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Fees: | 1.75%
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Cusip: | 09709TYW5
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