Published on 12/19/2019 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1 million contingent income callable yield notes on ETFs, index
By Kiku Steinfeld
Chicago, Dec. 19 – BofA Finance LLC priced $1 million of contingent income issuer callable yield notes due Dec. 11, 2025 linked to the least performing of the S&P 500 index, the SPDR S&P Regional Banking exchange-traded fund and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10% if each asset closes at or above its coupon barrier, 60% of its initial level, on the observation date for that quarter.
After six months, 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 the coupon due unless any asset finishes below its 60% threshold level, in which case investors will be fully exposed to any losses of the worst performing asset.
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 assets: | S&P 500 index, SPDR S&P Regional Banking ETF and iShares MSCI Emerging Markets ETF
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| Amount: | $1,000,000
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| Maturity: | Dec. 11, 2025
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| Coupon: | 10% annual rate, payable quarterly if each asset 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 asset finishes at or above downside threshold, par plus coupon; otherwise 1% loss for each 1% decline of worst performing index
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| Call option: | After six months, at par plus any coupon on any quarterly observation date other than final one
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| Initial levels: | $43.07 for EM ETF, $56.90 for Regional Banking ETF, 3,145.91 for S&P
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| Coupon barriers/downside thresholds: | $25.84 for EM ETF, $34.14 for Regional Banking ETF, 1,887.55 for S&P, 60% of initial levels
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| Pricing date: | Dec. 6
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| Settlement date: | Dec.11
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 0.25%
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| Cusip: | 09709TYC9
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