Published on 3/8/2020 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1 million contingent income autocallable yield notes on Russell, Stoxx, EM
By Kiku Steinfeld
Chicago, March 9 – BofA Finance LLC priced $1 million of contingent income autocallable yield notes due Aug. 29, 2022 linked to the worst performing of the iShares MSCI Emerging Markets ETF, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 9.5% if each underlying asset closes at or above its 70% coupon barrier on the observation date for that month.
The notes will be called at par plus the coupon if each asset closes above its strike level on any determination date other than the final one.
The payout at maturity will be par plus the final coupon unless any asset finishes below its 70% 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 agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income autocallable yield notes
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| Underlying assets: | Russell 2000 index, Euro Stoxx 50 index, iShares MSCI Emerging Markets ETF
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| Amount: | $1,000,000
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| Maturity: | Aug. 29, 2022
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| Coupon: | 9.5% annualized, payable monthly if each asset closes at or above its 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; otherwise, 1% loss for each 1% decline of worst performing asset
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| Call: | At par plus coupon if each asset closes at or above its strike level on any determination date other than final one
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| Strike levels: | 1,628.104 for Russell, 3,647.98 for Stoxx, $41.67 for ETF
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| Coupon barriers: | 1,139.673 for Russell, 2,553.59 for Stoxx, $29.17 for ETF, 70% of strike levels
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| Downside thresholds: | 1,139.673 for Russell, 2,553.59 for Stoxx, $29.17 for ETF, 70% of strike levels
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| Strike date: | Feb. 24
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| Pricing date: | Feb. 26
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| Settlement date: | March 2
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| Underwriter: | BofA Securities, Inc.
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| Fees: | 0.25%
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| Cusip: | 09709TB26
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