Published on 10/1/2018 in the Prospect News Structured Products Daily.
New Issue: BofA sells $298,000 contingent income autocallables tied to indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 1 – BofA Finance LLC priced $298,000 of contingent income autocallable notes due Sept. 28, 2028 linked to the worst performing of the Euro Stoxx 50 index, 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 6.75% if each underlying index closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes will be called at par if each index closes at or above its initial level on any determination date after one year.
The payout at maturity will be par unless any underlying index finishes below its 50% threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
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 indexes: | S&P 500 index, Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $298,000
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| Maturity: | Sept. 28, 2028
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| Coupon: | 6.75% annualized, payable quarterly if each index closes at or above its 70% 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 index finishes at or above threshold level, par plus coupon; otherwise, 1% loss for each 1% decline of worst performing index
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| 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: | 2,915.56 for S&P, 1,708.805 for Russell and 3,419.78 for Stoxx
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| Coupon barriers: | 2,040.89 for S&P, 1,196.164 for Russell, 2,393.853 for Stoxx, 70% of initial levels
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| Threshold levels: | 1,457.78 for S&P, 854.403 for Russell, 1,709.89 for Stoxx, 50% of initial levels
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 28
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| Underwriter: | BofA Merrill Lynch
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| Fees: | 4.5%
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| Cusip: | 09709TGK1
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