Published on 1/3/2019 in the Prospect News Structured Products Daily.
New Issue: BofA sells $565,000 contingent income autocallables tied to index, ETF
By Sarah Lizee
Olympia, Wash., Jan. 3 – BofA Finance LLC priced $565,000 of contingent income autocallable notes due July 2, 2026 linked to the worst performing of the Russell 2000 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 11% if each underlying asset closes at or above its 80% coupon barrier on the observation date for that month.
The notes will be called at par if each asset closes at or above its initial level on any determination date after one year.
The payout at maturity will be par unless either underlying asset finishes below its 80% threshold level, in which case investors will be fully exposed to any losses of the worse performing asset.
The notes are guaranteed by Bank of America Corp.
BofA Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Contingent income autocallable notes
|
| Underlying assets: | Russell 2000 index and iShares MSCI Emerging Markets ETF
|
| Amount: | $565,000
|
| Maturity: | July 2, 2026
|
| Coupon: | 11% annualized, payable monthly if each asset closes at or above its 80% coupon barrier on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If each asset finishes at or above threshold level, par plus coupon; otherwise, 1% loss for each 1% decline of worse performing asset
|
| Call: | At par if each component closes at or above its initial level on any interest payment date after one year
|
| Initial levels: | 1,337.923 for index and $39.24 for ETF
|
| Coupon barriers: | 1,070.338 for index and $31.39 for ETF, 80% of initial levels
|
| Threshold levels: | 1,070.338 for index and $31.39 for ETF, 80% of initial levels
|
| Pricing date: | Dec. 28
|
| Settlement date: | Jan. 2
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 1%
|
| Cusip: | 09709TKY6
|
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