Published on 1/2/2018 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1 million 15-year contingent income callable notes on S&P, Russell
By Marisa Wong
Morgantown, W.Va., Jan. 2 – BofA Finance LLC priced $1 million of contingent income issuer callable notes due Dec. 27, 2032 linked to the worst performing of the S&P 500 index and the Russell 2000 index, 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 8% if each index closes at or above its 75% coupon barrier on the determination date for that quarter.
The notes are callable at par on any contingent interest payment date after one year.
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 Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable notes
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| Underlying indexes: | S&P 500, Russell 2000
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| Amount: | $1 million
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| Maturity: | Dec. 27, 2032
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| Contingent coupon: | 8% per year, payable each quarter that each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon, if any, unless least performing index finishes below threshold level, in which case 1% loss for each 1% decline of least performing index from initial level
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| Call option: | At par plus any coupon on any contingent interest payment date after one year
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| Initial index levels: | 2,684.57 for S&P, 1,547.107 for Russell
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| Coupon barriers: | 2,013.43 for S&P, 1,160.330 for Russell; 75% of initial levels
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| Threshold levels: | 1,610.74 for S&P, 928.264 for Russell; 60% of initial levels
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| Pricing date: | Dec. 21
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| Settlement date: | Dec. 27
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| Agent: | BofA Merrill Lynch
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| Fees: | 5%
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| Cusip: | 09709TCL3
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