Published on 2/13/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.1 million contingent income callable yield notes on ETF, indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 13 – BofA Finance LLC priced $1.1 million of contingent income issuer callable yield notes due Feb. 11, 2026 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 8.5% if each asset closes at or above its coupon barrier, 70% of its initial level, on the observation date for that month.
After six months, the notes are callable at par plus any contingent coupon on any monthly observation date other than the final one.
The payout at maturity will be par plus any coupon due unless any asset finishes below its 60% 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 selling agent.
Issuer: | BofA Finance LLC
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Guarantor: | Bank of America Corp.
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Issue: | Contingent income issuer callable yield notes
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Underlying assets: | Russell 2000 index, Nasdaq-100 index and iShares MSCI Emerging Markets ETF
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Amount: | $1.1 million
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Maturity: | Feb. 11, 2026
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Coupon: | 8.5% annual rate, payable monthly if each asset 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 asset finishes at or above downside threshold, par plus coupon, if any; otherwise 1% loss for each 1% decline of worst performing index
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Call option: | After six months, at par plus any coupon on any monthly observation date other than final one
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Initial levels: | $43.97 for ETF, 9,445.916 for Nasdaq, 1,677.457 for Russell
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Coupon barriers: | $30.78 for ETF, 6,612.141 for Nasdaq, 1,174.22 for Russell, 70% of initial levels
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Downside thresholds: | $26.38 for ETF, 5,667.55 for Nasdaq, 1,006.474 for Russell, 60% of initial levels
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Pricing date: | Feb. 6
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Settlement date: | Feb. 11
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Selling agent: | BofA Securities, Inc.
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Fees: | 0.25%
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Cusip: | 09709TZW4
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