Pricing Supplement
(To Prospectus dated November 4, 2016,
Filed Pursuant to Rule 424(b)(2)
Series A Prospectus Supplement dated November 4, 2016 and Product Supplement EQUITY-1 dated January 24, 2017) Dated December 28, 2018
Registration Statement No. 333-213265
$565,000
BofA Finance LLC
Contingent Income Auto-Callable Notes Linked to the Least Performing of the Russell 2000® Index and the iShares® MSCI Emerging Markets ETF, due July 2, 2026
Fully and Unconditionally Guaranteed by Bank of America Corporation
· The CUSIP number for the notes is 09709TKY6.
· The notes are senior unsecured obligations issued by BofA Finance LLC ("BofA Finance"), a direct, wholly-owned subsidiary of Bank of America Corporation ("BAC" or the "Guarantor"), which are fully and unconditionally guaranteed by the Guarantor. Any payments due on the notes, including any repayment of principal, will be subject to the credit risk of BofA Finance, as issuer of the notes, and the credit risk of BAC, as guarantor of the notes.
· The notes do not guarantee a full return of your principal at maturity, and you could lose up to 80% of the principal amount at maturity.
· The notes will mature on July 2, 2026, unless previously called.
· Payments on the notes will depend on the individual performance of the Russell 2000® Index (the "RTY") and the iShares® MSCI Emerging Markets ETF (the "EEM") (each, an "Underlying," and collectively, the "Underlyings").
· If, on any monthly Observation Date, the Observation Value of each Underlying is greater than or equal to its Threshold Value, we will pay a Contingent Coupon Payment of $9.1667 per $1,000 in principal amount (a rate of 0.91667% per month, or 11.00% per annum) on the applicable Contingent Payment Date (each as defined below).
· The Contingent Payment Dates will be monthly, as indicated on page PS-4, commencing on February 4, 2019 and ending on the maturity date (the last monthly Contingent Payment Date will be the maturity date).
· Prior to the maturity date, if the Observation Value of each Underlying is greater than or equal to its Starting Value on any Observation Date occurring in March, June, September and December of each year, commencing on or after the December 2019 Observation Date but before the final Observation Date, the notes will be automatically redeemed, in whole but not in part, at 100% of the principal amount, together with the Contingent Coupon Payment with respect to that Observation Date. No further amounts will be payable following an early redemption.
· At maturity, the amount you will be entitled to receive per $1,000 in principal amount of the notes (the "Redemption Amount") will depend on the performance of the Least Performing Underlying (as defined below). If the notes are not automatically redeemed prior to maturity, the Redemption Amount will be determined as follows:
a) If the Ending Value (as defined below) of the Least Performing Underlying is greater than or equal to its Threshold Value, the Redemption Amount will equal the principal amount plus the final Contingent Coupon Payment.
b) If the Ending Value of the Least Performing Underlying is less than its Threshold Value, you will lose 1% of the principal amount for each 1% that the Ending Value of the Least Performing Underlying is less than its Threshold Value. In that case, the Redemption Amount will be less than the principal amount.
· The "Threshold Value" with respect to each Underlying is 80% of its Starting Value.
· The "Least Performing Underlying" will be the Underlying with the lowest Underlying Return (as defined below).
· The notes will not be listed on any securities exchange.
· The notes will be issued in denominations of $1,000 and whole multiples of $1,000.
· The initial estimated value of the notes is less than the public offering price. The initial estimated value of the notes as of December 28, 2018 (the "pricing date") is $956.50 per $1,000 in principal amount. See "Summary" beginning on page PS-3 of this pricing supplement, "Risk Factors" beginning on page PS-10 of this pricing supplement and "Structuring the Notes" on page PS-27 of this pricing supplement for additional information. The actual value of your notes at any time will reflect many factors and cannot be predicted with accuracy.
· The notes and the related guarantee:
Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value |
Per Note
Total
Public Offering Price(1) | $1,000.00 | $565,000 |
Underwriting Discount | $ 10.00 | $ 5,650 |
Proceeds (before expenses) to BofA Finance | $ 990.00 | $559,350 |
(1)
The public offering price for investors purchasing the notes in fee-based advisory accounts is $990.00 per note.
The notes and the related guarantee of the notes by the Guarantor are unsecured and are not savings accounts, deposits, or other obligations of a bank. The notes are not guaranteed by Bank of America, N.A. or any other bank, are not insured by the Federal Deposit Insurance Corporation or any other governmental agency and involve investment risks. Potential purchasers of the notes should consider the information in "Risk Factors" beginning on page PS- 10 of this pricing supplement, page PS-5 of the accompanying product supplement, page S-4 of the accompanying prospectus supplement, and page 7 of the accompanying prospectus. You may lose up to 80% of your principal amount in the notes.
None of the Securities and Exchange Commission (the "SEC"), any state securities commission, or any other regulatory body has approved or disapproved of these notes or the guarantee, or passed upon the adequacy or accuracy of this pricing supplement, or the accompanying product supplement, prospectus supplement or prospectus. Any representation to the contrary is a criminal offense.
We will deliver the notes in book-entry form only through The Depository Trust Company on January 2, 2019 against payment in immediately available funds.
BofA Merrill Lynch
Selling Agent
TABLE OF CONTENTS
Page | |
SUMMARY | PS-3 |
RISK FACTORS | PS-10 |
DESCRIPTION OF THE NOTES | PS-15 |
THE UNDERLYINGS | PS-17 |
SUPPLEMENTAL PLAN OF DISTRIBUTION; ROLE OF MLPF&S AND CONFLICTS OF INTEREST | PS-25 |
STRUCTURING THE NOTES | PS-27 |
VALIDITY OF THE NOTES | PS-27 |
U.S. FEDERAL INCOME TAX SUMMARY | PS-28 |
PS-2
SUMMARY
The Contingent Income Auto-Callable Notes Linked to the Least Performing of the Russell 2000® Index and the iShares® MSCI Emerging Markets ETF, due July 2, 2026 (the "notes") are our senior debt securities. Any payments on the notes are fully and unconditionally guaranteed by BAC. The notes and the related guarantee are not insured by the Federal Deposit Insurance Corporation or secured by collateral. The notes will rank equally with all of our other senior unsecured debt, and the related guarantee will rank equally with all of BAC's other senior unsecured debt. Any payments due on the notes, including any repayment of the principal amount, will be subject to the credit risk of BofA Finance, as issuer, and BAC, as guarantor. Unless earlier called, the notes will mature on July 2, 2026.
If, on any monthly Observation Date, the Observation Value of each Underlying is greater than or equal to its Threshold Value, we will pay a Contingent Coupon Payment of $9.1667 per $1,000 in principal amount (a rate of 0.91667% per month, or 11.00% per annum) on the applicable Contingent Payment Date. Prior to the maturity date, if the Observation Value of each Underlying is greater than or equal to its Starting Value on any Observation Date occurring in March, June, September and December of each year, commencing on or after the December 2019 Observation Date (other than the final Observation Date), the notes will be automatically redeemed, in whole but not in part, at 100% of the principal amount, together with the relevant Contingent Coupon Payment. No further amounts will be payable following an early redemption. If the notes are not called prior to maturity, and if the Ending Value of the Least Performing Underlying is greater than or equal to its Threshold Value, at maturity you will receive the principal amount plus the final Contingent Coupon Payment. If the Ending Value of the Least Performing Underlying is less than its Threshold Value, you will lose 1% of the principal amount for each 1% that the Ending Value of the Least Performing Underlying is less than its Threshold Value. In that case, the Redemption Amount will be less than the principal amount and you could lose up to 80% of your principal. The notes are not traditional debt securities and it is possible that the notes will not pay any Contingent Coupon Payments, and you may lose up to 80% of your principal amount at maturity.
Any payments on the notes, including any Contingent Coupon Payments, depend on the credit risk of BofA Finance and BAC and on the performance of each of the Underlyings. The economic terms of the notes are based on BAC's internal funding rate, which is the rate it would pay to borrow funds through the issuance of market-linked notes, and the economic terms of certain related hedging arrangements it enters into. BAC's internal funding rate is typically lower than the rate it would pay when it issues conventional fixed or floating rate debt securities. This difference in funding rate, as well as the underwriting discount and the hedging related charges described below, reduced the economic terms of the notes to you and the initial estimated value of the notes. Due to these factors, the public offering price you pay to purchase the notes is greater than the initial estimated value of the notes as of the pricing date.
On the cover page of this pricing supplement, we have provided the initial estimated value for the notes. For more information about the initial estimated value and the structuring of the notes, see "Risk Factors" beginning on page PS-10 and "Structuring the Notes" on page PS-27.
Issuer: | BofA Finance LLC ("BofA Finance") |
Guarantor: | Bank of America Corporation ("BAC") |
Term: | Approximately 90 months, if not previously called. |
Pricing Date: | December 28, 2018 |
Issue Date: | January 2, 2019 |
Maturity Date: | July 2, 2026 |
Underlyings: | The Russell 2000® Index (Bloomberg ticker: "RTY") and the iShares® MSCI Emerging Markets ETF (Bloomberg ticker: |
"EEM"). | |
Automatic Call: | All (but not less than all) of the notes will be automatically called if the Observation Value of each Underlying is |
greater than or equal to its Starting Value on any Observation occurring in March, June, September and December of | |
each year, commencing on or after the December 2019 Observation Date (other than the final Observation Date). If | |
the notes are automatically called, the Early Redemption Payment will be paid on the applicable | |
PS-3 |
Contingent Payment Date.
Observation Dates:
Monthly, callable quarterly beginning December 27, 2019. See "Observation Dates and Contingent Payment Dates" on page PS-5 below for details. The monthly Observation Dates are subject to postponement as set forth in "Description of the Notes-Certain Terms of the Notes-Events Relating to Observation Dates" on page PS-19 of product supplement EQUITY-1.
Early Redemption Payment:
The sum of the principal amount plus the Contingent Coupon Payment with respect to the applicable Observation Date.
Contingent Coupon Payment:
If, on any Observation Date, the Observation Value of each Underlying is greater than or equal to its Threshold Value, we will pay a Contingent Coupon Payment of $9.1667 per $1,000 in principal amount (a rate of 0.91667% per month or 11.00% per annum) on the applicable Contingent Payment Date.
Contingent Payment Dates:
As set forth in "Observation Dates and Contingent Payment Dates" on page PS-5 below. Postponement of a monthly Observation Date as set forth in "Description of the Notes-Certain Terms of the Notes-Events Relating to Observation Dates" on page PS-19 of product supplement EQUITY-1, will not cause the postponement of the Contingent Payment Date relating to such Observation Date.
Redemption Amount:
If the notes have not been automatically called prior to maturity, the Redemption Amount per note will be:
a) If the Ending Value of the Least Performing Underlying is greater than or equal to its Threshold Value: $1,000 + the final Contingent Coupon Payment
b) If the Ending Value of the Least Performing Underlying is less than its Threshold Value:
In that case, the Redemption Amount will be less than the principal amount and you could lose up to 80% of your principal.
Starting Value:
RTY: 1,337.923
EEM: $39.24
Threshold Value:
RTY: 1,070.338, which is 80% of its Starting Value (rounded to three decimal places).
EEM: $31.39, which is 80% of its Starting Value (rounded to two decimal places).
Observation Value:
With respect to the RTY, its closing level on the applicable Observation Date. With respect to the EEM, its Closing Market Price on the applicable Observation Date multiplied by its Price Multiplier on that day.
Price Multiplier:
One, subject to adjustment for certain events relating to the EEM as described in "Description of the Notes-Anti-Dilution and Discontinuance Adjustments Relating to ETFs" beginning on page PS-23 of product supplement EQUITY-1.
Ending Value:
With respect to each Underlying, its Observation Value on the final Observation Date.
Least Performing Underlying:
The Underlying with the lowest Underlying Return.
Underlying Return:
With respect to each Underlying, (Ending Value - Starting Value)
Starting Value
Calculation Agent:
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), an affiliate of BofA Finance. See "Supplemental Plan of Distribution; Role of MLPF&S and Conflicts of Interest" beginning on page PS-25.
Selling Agent:
MLPF&S, an affiliate of BofA Finance. See "Supplemental Plan of Distribution; Role of MLPF&S and Conflicts of Interest" beginning on page PS-25.
PS-4
Observation Dates and Contingent Payment Dates
Observation Dates | Contingent Payment Dates | Observation Dates | Contingent Payment Dates |
January 30, 2019 | February 4, 2019 | October 28, 2022 | November 2, 2022 |
February 27, 2019 | March 4, 2019 | November 29, 2022 | December 2, 2022 |
March 28, 2019 | April 2, 2019 | December 28, 2022 | January 3, 2023 |
April 29, 2019 | May 2, 2019 | January 30, 2023 | February 2, 2023 |
May 29, 2019 | June 3, 2019 | February 27, 2023 | March 2, 2023 |
June 27, 2019 | July 2, 2019 | March 29, 2023 | April 3, 2023 |
July 30, 2019 | August 2, 2019 | April 27, 2023 | May 2, 2023 |
August 28, 2019 | September 3, 2019 | May 30, 2023 | June 2, 2023 |
September 27, 2019 | October 2, 2019 | June 28, 2023 | July 3, 2023 |
October 30, 2019 | November 4, 2019 | July 28, 2023 | August 2, 2023 |
November 26, 2019 | December 2, 2019 | August 30, 2023 | September 5, 2023 |
December 27, 2019 | January 2, 2020 | September 27, 2023 | October 2, 2023 |
January 29, 2020 | February 3, 2020 | October 30, 2023 | November 2, 2023 |
February 26, 2020 | March 2, 2020 | November 29, 2023 | December 4, 2023 |
March 30, 2020 | April 2, 2020 | December 27, 2023 | January 2, 2024 |
April 29, 2020 | May 4, 2020 | January 30, 2024 | February 2, 2024 |
May 28, 2020 | June 2, 2020 | February 28, 2024 | March 4, 2024 |
June 29, 2020 | July 2, 2020 | March 27, 2024 | April 2, 2024 |
July 29, 2020 | August 3, 2020 | April 29, 2024 | May 2, 2024 |
August 28, 2020 | September 2, 2020 | May 29, 2024 | June 3, 2024 |
September 29, 2020 | October 2, 2020 | June 27, 2024 | July 2, 2024 |
October 28, 2020 | November 2, 2020 | July 30, 2024 | August 2, 2024 |
November 27, 2020 | December 2, 2020 | August 28, 2024 | September 3, 2024 |
December 29, 2020 | January 4, 2021 | September 27, 2024 | October 2, 2024 |
January 28, 2021 | February 2, 2021 | October 30, 2024 | November 4, 2024 |
February 25, 2021 | March 2, 2021 | November 26, 2024 | December 2, 2024 |
March 30, 2021 | April 2, 2021 | December 27, 2024 | January 2, 2025 |
April 28, 2021 | May 3, 2021 | January 29, 2025 | February 3, 2025 |
May 27, 2021 | June 2, 2021 | February 26, 2025 | March 3, 2025 |
June 29, 2021 | July 2, 2021 | March 28, 2025 | April 2, 2025 |
July 28, 2021 | August 2, 2021 | April 29, 2025 | May 2, 2025 |
August 30, 2021 | September 2, 2021 | May 28, 2025 | June 2, 2025 |
September 29, 2021 | October 4, 2021 | June 27, 2025 | July 2, 2025 |
October 28, 2021 | November 2, 2021 | July 30, 2025 | August 4, 2025 |
November 29, 2021 | December 2, 2021 | August 27, 2025 | September 2, 2025 |
December 29, 2021 | January 3, 2022 | September 29, 2025 | October 2, 2025 |
January 28, 2022 | February 2, 2022 | October 29, 2025 | November 3, 2025 |
February 25, 2022 | March 2, 2022 | November 26, 2025 | December 2, 2025 |
PS-5
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Disclaimer
Bank of America Corporation published this content on 02 January 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 02 January 2019 22:33:04 UTC