Published on 8/20/2018 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.72 million contingent income callables on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, Aug. 20 – Bank of America Corp. priced $1.72 million of contingent income callable securities due Aug. 15, 2022 linked to the least performing of the Dow Jones industrial average, the Nasdaq-100 index and the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by BofA Finance LLC.
The notes will pay a contingent quarterly coupon at an annual rate of 8.5% if each asset closes at or above its 60% downside threshold on the observation date for that quarter.
After six months, the notes will be callable at par on any contingent payment date other than the final date.
The payout at maturity will be par unless any asset finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing asset.
BofA Merrill Lynch is the underwriter.
| Issuer: | Bank of America Corp.
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| Guarantor: | BofA Finance LLC
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| Issue: | Contingent income callable securities
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| Underlying assets: | Dow Jones industrial average, Nasdaq-100 index and SPDR S&P Regional Banking ETF
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| Amount: | $1.72 million
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| Maturity: | Aug. 15, 2022
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| Coupon: | 8.5% annualized, payable quarterly if each asset closes at or above 60% downside threshold on review date
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| Price: | Par
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| Payout at maturity: | If each asset finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing asset
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| Call option: | At par on any contingent payment date after six months other than the final date
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| Initial levels: | 25,313.14 for Dow, $62.32 for fund, 7,408.304 for Nasdaq
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| Downside thresholds: | 15,187.88 for Dow, $37.39 for fund, 4,444.982 for Nasdaq, 60% of initial levels
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| Pricing date: | Aug. 10
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| Settlement date: | Aug. 15
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| Agent: | BofA Merrill Lynch
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| Fees: | 0.25%
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| Cusip: | 09709TFY2
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