Published on 8/16/2018 in the Prospect News Structured Products Daily.
New Issue: BofA prices $2.05 million contingent income callables on three indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 16 – Bank of America Corp. priced $2.05 million of contingent income callable securities due Feb. 4, 2022 linked to the least performing of the Nikkei Stock Average index, the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by BofA Finance LLC.
The notes will pay a contingent quarterly coupon at an annual rate of 8.35% if each index closes at or above its 65% downside threshold on the observation date for that quarter.
After six months, the notes will be callable at par on any contingent payment date other than the final date.
The payout at maturity will be par unless any index finishes below its 65% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
BofA Merrill Lynch is the underwriter.
| Issuer: | Bank of America Corp.
|
| Guarantor: | BofA Finance LLC
|
| Issue: | Contingent income callable securities
|
| Underlying indexes: | Euro Stoxx 50 index, Russell 2000 index, Nikkei Stock Average index
|
| Amount: | $2.05 million
|
| Maturity: | Feb. 4, 2022
|
| Coupon: | 8.35% annualized, payable quarterly if each index closes at or above 65% downside threshold on review date
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call option: | At par on any contingent payment date after six months other than the final date
|
| Initial levels: | 3,509.23 for Stoxx, 1,669.263 for Russell, 22,746.7 for Nikkei
|
| Downside thresholds: | 2,281.00 for Stoxx, 1,085.021 for Russell, 14,785.36 for Nikkei, 65% of initial levels
|
| Pricing date: | Aug. 1
|
| Settlement date: | Aug. 6
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 09709TFU0
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
