Published on 7/8/2020 in the Prospect News Structured Products Daily.
New Issue: BofA sells $12.5 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, July 8 – BofA Finance LLC priced $12.5 million of trigger callable contingent yield notes with daily coupon observation due July 8, 2022 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at a rate of 12.7% per year if each index closes at or above its coupon barrier, 65% of its initial level, on every day that quarter.
The notes are callable at par of $10 plus any coupon due on any quarterly coupon payment date.
If the notes are not called and each index finishes at or above its downside threshold, 55% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
The notes are guaranteed by Bank of America Corp.
UBS Financial Services Inc. and BofA Securities, Inc. are the agents.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | Euro Stoxx 50, Russell 2000 and S&P 500
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| Amount: | $12,503,370
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| Maturity: | July 8, 2022
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| Coupon: | 12.7% per year, payable quarterly if each index closes at or above its coupon barrier on each day that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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| Call option: | At par plus any coupon due on any quarterly coupon payment date
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| Initial levels: | 3,130.01 for S&P, 1,431.86 for Russell 2000 and 3,320.09 for Stoxx
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| Coupon barriers: | 2,034.51 for S&P, 930.709 for Russell 2000 and 2,158.06 for Stoxx, or 65% of initial levels
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| Downside thresholds: | 1,721.51 for S&P, 787.523 for Russell 2000 and 1,826.05 for Stoxx, or 55% of initial levels
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| Pricing date: | July 2
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| Settlement date: | July 8
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| Agents: | UBS Financial Services Inc. and BofA Securities, Inc.
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| Fees: | 1.25%
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| Cusip: | 05591G553
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