Published on 8/1/2018 in the Prospect News Structured Products Daily.
New Issue: BofA sells $22.21 million autocallable step-up notes due 2023 on Russell
By Sarah Lizee
Olympia, Wash., Aug. 1 – BofA Finance LLC priced $22.21 million of 0% autocallable market-linked step-up notes due July 28, 2023 tied to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
The notes will be called at par of $10 plus a premium of 6.23% per year if the index's closing level is greater than or equal to the initial level on Aug. 2, 2019, July 24, 2020, July 23, 2021 or July 22, 2022.
If the index finishes above the step-up value, 135% of the initial value, the payout at maturity will be par plus the index return.
If the index return is zero or positive but the index finishes at or below the step-up value, the payout will be par plus the step-up payment of 35%.
Investors will receive par if the index declines by up to 15% and will be exposed to any losses beyond the buffer.
BofA Merrill Lynch is the underwriter.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | Russell 2000
|
| Amount: | $22,205,690
|
| Maturity: | July 28, 2023
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If index finishes above step-up value, par plus index return; if index stays flat or gains but finishes at or below step-up value, par plus 50%; if index declines up to 15%, par; exposure to losses beyond 15%
|
| Call: | Automatically at par plus a premium of 6.23% per year if the index's closing level is greater than or equal to the initial level on Aug. 2, 2019, July 24, 2020, July 23, 2021 or July 22, 2022
|
| Initial index level: | 1,695.36
|
| Step-up value: | 2,288.74, 135% of initial value
|
| Threshold value: | 1,441.06, 85% on initial value
|
| Pricing date: | July 26
|
| Settlement date: | Aug. 2
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 097097695
|
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