Published on 2/7/2020 in the Prospect News Structured Products Daily.
New Issue: BofA sells $500,000 contingent income issuer callable yield notes on Dow, Russell
By Sarah Lizee
Olympia, Wash., Feb. 7 – BofA Finance LLC priced $500,000 of contingent income issuer callable yield notes due Jan. 31, 2025 linked to the worst performing of the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 5.5% if each underlying index closes at or above its 75% coupon barrier on the observation date for that month.
The notes are callable at par on any quarterly determination date after six months.
The payout at maturity will be par unless any index finishes below its 60% 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 Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable yield notes
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| Underlying assets: | Dow Jones industrial average and the Russell 2000 index
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| Amount: | $500,000
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| Maturity: | Jan. 31, 2025
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| Coupon: | 5.5% annualized, payable monthly if each index closes at or above its coupon barrier on observation date for that month
|
| 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 quarterly determination date after six months
|
| Initial levels: | 28,722.85 for Dow, 1,658.314 for Russell
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| Coupon barriers: | 21,542.14 for Dow, 1,243.736 for Russell, 75% of initial levels
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| Downside thresholds: | 17,233.71 for Dow, 994.988 for Russell, 60% of initial levels
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| Pricing date: | Jan. 28
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| Settlement date: | Jan. 31
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| Underwriter: | BofA Securities, Inc.
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| Fees: | 3.25%
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| Cusip: | 09709TZB0
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