Published on 3/18/2020 in the Prospect News Structured Products Daily.
New Issue: BofA sells $2 million contingent income autocallable yield notes on Russell, Stoxx, EM
By Wendy Van Sickle
Columbus, Ohio, March 18 – BofA Finance LLC priced $2 million of contingent income autocallable yield notes due Sept. 14, 2022 linked to the worst performing of the MSCI Emerging Markets index, the Russell 2000 index and the Euro Stoxx 50 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 10.1% if each underlying asset closes at or above its 60% coupon barrier on the observation date for that month.
Starting in June, the notes will be called at par plus the coupon if each asset closes above its strike level on any determination date other than the final one.
The payout at maturity will be par plus the final coupon unless any asset finishes below its 70% 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 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 autocallable yield notes
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| Underlying assets: | Russell 2000 index, Euro Stoxx 50 index, MSCI Emerging Markets index
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| Amount: | $2 million
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| Maturity: | Sept. 14, 2022
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| Coupon: | 10.1% annualized, payable monthly if each asset closes at or above its coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | If each asset finishes at or above downside threshold, par plus coupon; otherwise, 1% loss for each 1% decline of worst performing asset
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| Call: | Beginning in June at par plus coupon if each asset closes at or above its strike level on any determination date other than final one
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| Strike levels: | 1,449.221 for Russell, 3,232.07 for Stoxx, 1,012.08 for EM
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| Coupon barriers: | 869.533 for Russell, 1,939.24 for Stoxx, 607.25 for EM 60% of strike levels
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| Downside thresholds: | 1,014.455 for Russell, 2,262.45 for Stoxx, 708.46 for EM, 70% of strike levels
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| Strike date: | March 6
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| Pricing date: | March 9
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| Settlement date: | March 12
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| Underwriter: | BofA Securities, Inc.
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| Fees: | 0.25%
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| Cusip: | 09709TC82
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