By Wendy Van Sickle
Columbus, Ohio, April 9 – BofA Finance LLC priced $250,000 of contingent income issuer callable notes due March 31, 2021 linked to the worst performing of the SPDR S&P Biotech ETF, the iShares Energy Select Sector SPDR fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
Each quarter, the notes will pay a contingent coupon at an annual rate of 11% if each ETF closes at or above its 70% threshold value on the determination date for that quarter.
The notes will be callable at par on any contingent interest payment date after one year.
The payout at maturity will be par plus the final coupon unless any ETF finishes below its 70% threshold value, in which case investors will be fully exposed to any losses of the worst performing ETF.
BofA Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable notes
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| Underlying funds: | Financial Select Sector SPDR fund, SPDR S&P Biotech ETF and iShares Energy Select Sector SPDR fund
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| Amount: | $250,000
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| Maturity: | March 31, 2021
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| Contingent coupon: | 11% annualized, payable quarterly if each fund closes at or above threshold level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus coupon unless any fund finishes below threshold, in which case 1% loss for each 1% decline of worst performing fund
|
| Call option: | At par plus any coupon due on any contingent interest payment date after a year
|
| Initial levels: | $27.69 for Financial Select, $91.05 for Biotech and $67.97 for Energy
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| Thresholds: | $19.38 for Financial Select, $63.74 for Biotech and $47.58 for Energy; 70% of initial levels
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| Pricing date: | March 26
|
| Settlement date: | March 29
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 3%
|
| Cusip: | 09709TDT5
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