Published on 8/13/2018 in the Prospect News Structured Products Daily.
New Issue: BofA sells $770,000 contingent income autocallables tied to indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 13 – BofA Finance LLC priced $770,000 of contingent income autocallable notes due July 31, 2025 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 will pay a contingent quarterly coupon at an annual rate of 6% if each underlying asset closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes will be called at par if each component closes at or above its initial level on any determination date after one year.
The payout at maturity will be par unless any underlying asset finishes below its 75% threshold level, in which case investors will be fully exposed to any losses of the worst performing index or fund.
The notes are guaranteed by Bank of America Corp.
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 autocallable notes
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| Underlying assets: | S&P 500 index, Russell 2000 index
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| Amount: | $770,000
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| Maturity: | July 31, 2025
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| Coupon: | 6% annualized, payable quarterly if each asset closes at or above its 75% coupon barrier on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | If each asset finishes at or above threshold level, par; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call: | At par if each component closes at or above its initial level on any interest payment date after one year
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| Initial levels: | 2,837.44 for S&P, 1,695.36 for Russell
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| Threshold levels: | 2,128.08 for S&P, 1,271.52 for Russell, 75% of initial levels
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| Pricing date: | July 26
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| Settlement date: | July 31
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| Underwriter: | BofA Merrill Lynch
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| Fees: | 4%
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| Cusip: | 09709TFN6
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