Published on 10/26/2018 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.75 million of contingent income callable notes on indexes, fund
By Sarah Lizee
Olympia, Wash., Oct. 26 – BofA Finance LLC priced $1.75 million of contingent income issuer callable notes due Oct. 31, 2022 linked to the worst performing of the S&P 500 index, the Nasdaq-100 index and the United States Oil Fund, LP, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9.8% if each asset closes at or above its 60% coupon barrier on the determination date for that quarter.
The notes will be callable at par on any contingent interest payment date after one year.
If each asset closes above 60% of its initial level, the payout at maturity will be par plus the final coupon. If any asset closes below 60% of its initial level but above 50% of its initial level, the payout will be par. If any asset falls by more than 50%, investors will be fully exposed to any losses of the worst performing asset.
BofA Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Contingent income issuer callable notes
|
| Underlying assets: | S&P 500 index, the Nasdaq-100 index and the United States Oil Fund, LP
|
| Amount: | $1,753,000
|
| Maturity: | Oct. 31, 2022
|
| Contingent coupon: | 9.8% annualized, payable quarterly if each asset closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each asset closes above 60% of its initial level, par plus the final coupon; if any asset closes below 60% of its initial level but above 50% of its initial level, par; if any asset falls by more than 50%, investors will be fully exposed to any losses of the worst performing asset
|
| Call option: | At par plus any coupon due on any contingent interest payment date after a year
|
| Initial levels: | 2,656.10 for S&P, 6,789.154 for Nasdaq, $14.05 for fund
|
| Coupon barriers: | 1,593.66 for S&P, 4,073,492 for Nasdaq, $8.43 for fund; 60% of initial levels
|
| Thresholds: | 1,328.05 for S&P, 3,394.577 for Nasdaq, $7.03 for fund; 50% of initial levels
|
| Pricing date: | Oct. 24
|
| Settlement date: | Oct. 29
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 0.25%
|
| Cusip: | 09709THX2
|
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