Published on 12/12/2018 in the Prospect News Structured Products Daily.
New Issue: BofA sells $6.2 million contingent income autocallables tied to indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, Dec. 12 – BofA Finance LLC priced $6.2 million of contingent income autocallable notes due Dec. 10, 2021 linked to the worst performing of the Nasdaq-100 index, the Euro Stoxx 50 index and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.5% if each underlying asset closes at or above its 60% coupon barrier on the observation date.
The notes will be called at par if each asset closes at or above its initial level on any determination date after one year.
The payout at maturity will be par unless either underlying asset finishes below its 60% threshold level, in which case investors will be fully exposed to any losses of the worse performing asset.
The notes are 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 autocallable notes
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| Underlying assets: | Nasdaq-100 index, Euro Stoxx 50 index and SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $6.2 million
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| Maturity: | Dec. 10, 2021
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| Coupon: | 11.5% annualized, payable quarterly if each asset closes at or above its 60% coupon barrier on observation date
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| Price: | Par
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| Payout at maturity: | If each asset finishes at or above threshold level, par plus coupon; otherwise, 1% loss for each 1% decline of worse performing asset
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| Call: | At par if each component closes at or above its initial level on any interest payment date after one year
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| Initial levels: | 6,613.275 for Nasdaq, 3,058.53 for Stoxx and $31.54 for ETF
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| Coupon barriers: | 3,967.965 for Nasdaq, 1,835.12 for Stoxx and $18.92 for ETF, 60% of initial levels
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| Threshold levels: | 3,967.965 for Nasdaq, 1,835.12 for Stoxx and $18.92 for ETF, 60% of initial levels
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| Pricing date: | Dec. 7
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| Settlement date: | Dec. 12
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| Underwriter: | BofA Merrill Lynch
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| Fees: | 2.85%
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| Cusip: | 09709TKC4
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