Published on 10/10/2018 in the Prospect News Structured Products Daily.
New Issue: BofA sells $5 million contingent income autocallables tied to Nasdaq, Russell indexes, Dow ETF
By Wendy Van Sickle
Columbus, Ohio, Oct. 10 – BofA Finance LLC priced $5 million of contingent income autocallable notes due Oct. 2, 2020 linked to the worst performing of the SPDR Dow Jones industrial average ETF, the Nasdaq-100 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 10.35% if each underlying asset closes at or above its 80% coupon barrier on the observation date for that quarter.
The notes will be called at par if each asset closes at or above its initial level on any determination date.
The payout at maturity will be par plus the final coupon unless any underlying asset finishes below its 80% threshold level, in which case investors will be fully exposed to any losses of the worst performing asset.
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 assetss: | Nasdaq-100 index, Russell 2000 index, SPDR Dow Jones industrial average ETF
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| Amount: | $5 million
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| Maturity: | Oct. 2, 2020
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| Coupon: | 10.35% annualized, payable quarterly if each asset closes at or above its 80% threshold 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 plus coupon; otherwise, 1% loss for each 1% decline of worst performing asset
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| Call: | At par if each component closes at or above its initial level on any interest payment date
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| Initial levels: | 7,629.572 for Nasdaq, 1,690.526 for Russell and $264.25 for Dow
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| Threshold levels: | 6,103.658 for Nasdaq, 1,352.42 for Russell and $211.40 for Dow, 80% of initial levels
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| Pricing date: | Sept. 27
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| Settlement date: | Oct. 2
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| Underwriter: | BofA Merrill Lynch
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| Fees: | 1.75%
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| Cusip: | 09709TJW2
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