Published on 3/27/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $3.62 million contingent income callables on S&P, Dow
By Sarah Lizee
Olympia, Wash., March 27 – BofA Finance LLC priced $3.62 million of contingent income issuer callable yield notes due June 23, 2021 linked to the worst performing of the S&P 500 index and the Dow Jones industrial average, 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 15% if each index closes at or above its 60% coupon barrier on the determination date for that quarter.
The notes are callable at par on any contingent interest payment date after six months.
The payout at maturity will be par plus the final coupon, if any, unless either index finishes below its 60% threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
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 callable yield notes
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| Underlying indexes: | Dow Jones industrial average and S&P 500
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| Amount: | $3.62 million
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| Maturity: | June 23, 2021
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| Coupon: | 15% annualized, payable quarterly if each index closes at or above downside threshold on review 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; otherwise, 1% loss for each 1% decline of worst performing index
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| Call option: | At par on any contingent payment date after six months
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| Initial levels: | 19,898.92 for Dow, 2,398.10 for S&P
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| Downside thresholds: | 11,939.35 for Dow, 1,438.86 for S&P, 60% of initial levels
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| Pricing date: | March 20
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| Settlement date: | March 25
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| Agent: | BofA Securities, Inc.
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| Fees: | 0.25%
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| Cusip: | 09709TE31
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