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BofA sets $69.5291 threshold price for 0.25% cash-settled notes on Voya
By Wendy Van Sickle
Columbus, Ohio, April 12 – BofA Finance LLC announced the threshold price has been set at $69.5291 for the $250 million of five-year 0.25% cash-settled equity-linked notes tied to Voya Financial, Inc.
The threshold price represents a 37.5% premium over the initial reference price of $50.5666, which equals the arithmetic average of the volume-weighted average prices of one share of Voya common stock over the five consecutive trading days ending April 12, according to a press release.
BofA priced the notes on April 5.
Price talk had been for a coupon of 0% to 0.25% and an initial conversion premium of 37.5% to 42.5%.
BofA Merrill Lynch was the sole bookrunner for the registered offering. The notes will be issued with a minimum purchase of $100,000 and whole multiples of $1,000 above that.
The notes are non-callable and have no put options. There is standard dividend protection above 1% per quarter and a make-whole adjustment premium upon a change of control.
The notes may be converted for cash during the 10 trading days following the May interest payment date, beginning on May 1, 2019, if the product of the price multiplier and Voya common stock is greater than or equal to the initial reference price for 20 out of 30 trading days, according to a 424B2 filing with the Securities and Exchange Commission.
A make-whole event will occur if there is a change of control of Voya or it merges or sells its assets. In that case, holders will receive a make-whole payment but will not be able to convert the notes and will receive par at maturity.
BofA Finance LLC is a subsidiary of Bank of America Corp., a Charlotte, N.C. -based financial institution, which will guarantee the notes.
Voya Financial is a New York, New York-based investment and insurance company.
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