Published on 5/19/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1 million contingent income buffered autocallable yield notes on Nasdaq, Dow
By Kiku Steinfeld
Chicago, May 19 – BofA Finance LLC priced $1 million of contingent income buffered autocallable yield notes due May 19, 2022 linked to the least performing of the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 7% if each index closes at or above its coupon barrier, 74% of its initial level, on the observation date for that month.
The notes will be called at par plus the contingent coupon on any quarterly observation date after one year.
The payout at maturity will be par plus the coupon unless any index finishes below its 74% threshold level, in which case investors will be fully exposed to any losses of the worst performing index beyond 26% of its initial level.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the selling agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income buffered autocallable yield notes
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| Underlying indexes: | Nasdaq-100, Dow Jones industrial average
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| Amount: | $1,000,000
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| Maturity: | May 19, 2022
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| Coupon: | 7% annual rate, payable monthly if each index closes at or above coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par plus coupon; otherwise 1% loss for each 1% decline of worst performing index beyond threshold level
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| Call: | At par plus coupon on any quarterly observation date after one year
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| Initial levels: | 9,094.426 for Nasdaq, 23,625.34 for Dow
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| Coupon barriers/thresholds: | 6,729.875 for Nasdaq, 17,482.75 for Dow, 74% of initial levels
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| Pricing date: | May 14
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| Settlement date: | May 19
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 1%
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| Cusip: | 09709TF48
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