Published on 11/28/2018 in the Prospect News Structured Products Daily.
New Issue: BofA sells $2.5 million 7.8% contingent income callables on S&P, Russell
By Susanna Moon
Chicago, Nov. 28 – BofA Finance LLC priced $2.5 million of contingent income issuer callable notes due Nov. 12, 2019 linked to the worst performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 7.8% if each index closes at or above its 70% threshold on the determination date for that month.
The notes are callable at par on any determination date.
The payout at maturity will be par plus the coupon unless either index finishes below its 70% threshold, in which case investors will be fully exposed to any losses of the worse performing index.
The notes will be guaranteed by Bank of America Corp.
BofA Merrill Lynch 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 notes
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Underlying assets: | Russell 2000 index, S&P 500 index
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Amount: | $2.5 million
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Maturity: | Nov. 12, 2019
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Coupon: | 7.8% annualized, payable monthly if each index closes at or above its 70% 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 70% downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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Call option: | At par on any interest payment date
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Initial levels: | 1,572.57 for Russell, 2,798.06 for S&P
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Downside thresholds: | 1,100.799 for Russell, 1,958.642 for S&P, 70% of initial levels
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Pricing date: | Nov. 7
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Settlement date: | Nov. 9
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Underwriter: | BofA Merrill Lynch
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Fees: | None
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Cusip: | 09709TGQ8
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