Published on 8/13/2018 in the Prospect News Structured Products Daily.
New Issue: BofA prices $250,000 contingent income callables on indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 13 – Bank of America Corp. priced $250,000 of contingent income callable securities due July 31, 2022 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by BofA Finance LLC.
The notes will pay a contingent monthly coupon at an annual rate of 5.3004% if each index closes at or above its 60% downside threshold on the observation date for that month.
After one year, the notes will be callable at par on any contingent payment date other than the final date.
The payout at maturity will be par unless any index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses of the worst performing index.
BofA Merrill Lynch is the underwriter.
Issuer: | Bank of America Corp.
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Guarantor: | BofA Finance LLC
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Issue: | Contingent income callable securities
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Underlying indexes: | S&P 500 index, Russell 2000 index
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Amount: | $250,000
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Maturity: | July 31, 2022
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Coupon: | 5.3004% annualized, payable monthly if each index closes at or above 60% downside threshold on review date for that month
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Price: | Par
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Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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Call option: | At par on any contingent payment date after one year other than the final date
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Initial levels: | 2,837.44 for S&P, 1,695.36 for Russell
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Downside thresholds: | 1,702.46 for S&P, 1,017.216 for Russell, 60% of initial levels
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Pricing date: | July 26
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Settlement date: | July 31
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Agent: | BofA Merrill Lynch
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Fees: | 3.25%
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Cusip: | 09709TFL0
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