Published on 3/13/2020 in the Prospect News Structured Products Daily.
New Issue: BofA sells $2 million contingent income autocallables tied to indexes, ETF
By Sarah Lizee
Olympia, Wash., March 13 – BofA Finance LLC priced $2 million of contingent income autocallable notes due Sept. 9, 2022 linked to the worst performing of the Russell 2000 index, the Euro Stoxx 50 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 11% if each underlying asset closes at or above its 70% coupon barrier on the observation date.
The notes will be called at par if each asset closes at or above its initial level on any determination date starting in June.
The payout at maturity will be par unless either underlying asset finishes below its 70% threshold level, in which case investors will be fully exposed to any losses of the worse performing asset.
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 autocallable notes
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| Underlying assets: | Russell 2000 index, the Euro Stoxx 50 index and the iShares MSCI Emerging Markets ETF
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| Amount: | $2 million
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| Maturity: | Sept. 9, 2022
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| Coupon: | 11% annualized, payable monthly if each asset closes at or above its coupon barrier on observation date
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| Price: | Par
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| Payout at maturity: | If each asset finishes at or above threshold level, par plus coupon; otherwise, 1% loss for each 1% decline of worse performing asset
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| Call: | At par if each component closes at or above its initial level on any interest payment date starting in June
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| Initial levels: | 1,518.491 for Russell, 3,338.83 for Stoxx, $41.40 for ETF
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| Coupon barriers: | 1,062.944 for Russell, 2,337.18 for Stoxx, $28.98 for ETF, 70% of initial levels
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| Threshold levels: | 1,062.944 for Russell, 2,337.18 for Stoxx, $28.98 for ETF, 70% of initial levels
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| Pricing date: | March 4
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| Settlement date: | March 9
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| Underwriter: | BofA Securities, Inc.
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| Fees: | 0.25%
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| Cusip: | 09709TC58
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