By Wendy Van Sickle
Columbus, Ohio, March 21 – BofA Finance LLC priced $5.25 million of contingent income issuer callable notes due Sept. 24, 2019 linked to the worst performing of the iShares MSCI Emerging Markets exchange-traded fund and the Financial Select Sector SPDR fund, 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 8% if each ETF closes at or above its 70% threshold value on the determination date for that quarter.
The notes will be callable at par on any contingent interest payment date from Dec. 24, 2018 to June 24, 2019.
The payout at maturity will be par plus the final coupon unless either ETF finishes below its 70% threshold value, in which case investors will be fully exposed to any losses of the worst performing ETF.
BofA Merrill Lynch 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 notes
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| Underlying funds: | Financial Select Sector SPDR fund and iShares MSCI Emerging Markets ETF
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| Amount: | $5.25 million
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| Maturity: | Sept. 24, 2019
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| Contingent coupon: | 8% annualized, payable quarterly if each fund closes at or above threshold level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus coupon unless either fund finishes below threshold, in which case 1% loss for each 1% decline of worst performing fund
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| Call option: | At par plus any coupon due on any contingent interest payment date from Dec. 24, 2018 to June 24, 2019
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| Initial levels: | $28.66 for Financial Select and $48.68 for Emerging Markets
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| Thresholds: | $20.06 for Financial Select and $34.08 for Emerging Markets; 70% of initial levels
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| Pricing date: | March 19
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| Settlement date: | March 22
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| Agent: | BofA Merrill Lynch
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| Fees: | 1.5%
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| Cusip: | 09709TEA5
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