Published on 5/30/2018 in the Prospect News Structured Products Daily.
New Issue: BofA sells $27.99 million market-linked step-up notes tied to basket
By Sarah Lizee
Olympia, Wash., May 30 – BofA Finance LLC priced $27.99 million of market-linked step-up notes due June 1, 2020 linked to an international equity index and exchange-traded fund basket, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
The basket consists of the Hang Seng index with an initial weight of 35%, the Nikkei Stock Average index with an initial weight of 30%, the Taiwan Stock Exchange Weighted Index with an initial weight of 10%, the Korea Stock Exchange Kospi 200 index with an initial weight of 10%, the iShares MSCI India exchange-traded fund with an initial weight of 10% and the WisdomTree India Earnings Fund with an initial weight of 5%.
If the basket finishes above its step-up level – 118.15% of the initial level – the payout at maturity will be par plus the gain.
If the basket is flat or gains by up to the step-up level, the payout will be par plus the step-up return of 18.15%.
Investors will be exposed to any losses.
BofA Merrill Lynch is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Market-linked step-up notes
|
| Underlying basket: | Hang Seng (35% initial weight), Nikkei Stock Average (30% initial weight), Taiwan Stock Exchange Weighted Index (10% initial weight), Korea Stock Exchange KOSPI 200 index (10% initial weight), iShares MSCI India ETF (10% initial weight), WisdomTree India Earnings Fund (5% initial weight)
|
| Amount: | $27,986,399.25
|
| Maturity: | June 1, 2020
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket finishes at or above the step-up level, par plus gain; if basket is flat or gains by up to step-up level, par plus 18.15%; full exposure to losses
|
| Step-up level: | 118.15% of initial level
|
| Initial index levels: | 30,760.41 for Hang Seng, 22,437.01 for Nikkei Stock Average, 10,936.93 for Taiwan Stock Exchange Weighted Index, 317.48 for Korea Stock Exchange KOSPI 200 index, $32.87 for iShares MSCI India ETF, $25.14 for WisdomTree India Earnings Fund
|
| Pricing date: | May 24
|
| Settlement date: | June 1
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 097097620
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