Filed Pursuant to Rule 424(b)(2)
Registration Statement No. 333-213265
Pricing Supplement dated January 4, 2019.
BofA Finance LLC
$2,542,000
Leveraged Buffered Basket-Linked Notes due December 8, 2020
Fully and Unconditionally Guaranteed by
Bank of America Corporation
The notes do not bear interest. The amount that you will be paid on your notes on the stated maturity date (December 8, 2020) is based on the performance of a weighted basket comprised of the EURO STOXX 50® Index (36% weighting), the TOPIX® (27% weighting), the FTSE® 100 Index (20% weighting), the
Swiss Market Index (9% weighting) and the S&P®/ASX 200 Index (8% weighting), as measured from the trade date (January 4, 2019) to and including the determination date (December 4, 2020, subject to adjustment). The initial basket level is 100 and the final basket level will equal the sum of the products, as calculated for each basket underlier, of: (i) the final index level divided by (ii) the initial index level (the EURO STOXX 50® Index (3,041.85), the TOPIX®
(1,471.16), the FTSE® 100 Index (6,837.42), the Swiss Market Index (8,608.56) and the S&P®/ASX 200 Index (5,619.355)) multiplied by (iii) the applicable initial weighted value for the basket underlier. If the final basket level on the determination date is greater than the initial basket level, the return on your notes will be positive, subject to the maximum settlement amount of $1,330.00 for each $1,000 face amount of your notes. If the final basket level declines by up to 20.00% from the initial basket level, you will receive the face amount of your notes. If the final basket level declines by more than 20.00% from the initial basket level, you will be exposed on a leveraged basis to any decrease in the final basket level beyond 20.00%. In this case, the return on your notes will be negative. You may lose some or all of your investment in the notes.
To determine your payment at maturity, we will calculate the basket return, which is the percentage increase or decrease in the final basket level from the initial basket level. On the stated maturity date, for each $1,000 face amount of your notes, you will receive an amount in cash equal to:
● if the basket return is positive (the final basket level is greater than the initial basket level), the sum of (i) $1,000 plus (ii) the product of (a) $1,000 times (b) 2.4 times (c) the basket return, subject to the maximum settlement amount;
● if the basket return is zero or negative but not below -20.00% (the final basket level is equal to the initial basket level or is less than the initial basket level, but not by more than 20.00%), $1,000; or
● if the basket return is negative and is below -20.00% (the final basket level is less than the initial basket level by more than 20.00%), the sum of (i) $1,000 plus (ii) the product of (a) 1.25 times (b) the sum of the basket return plus 20.00% times (c) $1,000. This amount will be less than $1,000.
Declines in one basket underlier may offset increases in the other basket underliers. Due to the unequal weighting of each basket underlier, the performances of the EURO STOXX 50® Index, the TOPIX® and the FTSE® 100 Index will have a significantly larger impact on your return on the notes than the performance of the Swiss Market Index or the S&P®/ASX 200 Index.
The notes will not be listed on any securities exchange. Investment in the notes involves certain risks, including the credit risk of BofA Finance LLC ("BofA Finance"), as issuer of the notes, and the credit risk of Bank of America Corporation ("BAC" or the "Guarantor"), as guarantor of the notes. Potential purchasers of the notes should consider the information in "Risk Factors" beginning on page PS-18 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.
As of the trade date, the initial estimated value of the notes is $992.30 per $1,000 in face amount. See "Summary Information" beginning on page PS- 6 of this pricing supplement, "Risk Factors" beginning on page PS- 18 of this pricing supplement and "Structuring the Notes" on page PS- 46 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.
Original issue date: | January 11, 2019 | Price to public: | 100.00% of the face amount |
Underwriting discount(1): | 0.00% of the face amount | Net proceeds to the issuer: | 100.00% of the face amount |
(1) Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), an affiliate of BofA Finance, will participate as selling agent in the distribution of the notes. See "Supplemental Plan of Distribution - Conflicts of Interest" on page PS-44 of this pricing supplement.
Neither the Securities and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this pricing supplement or the accompanying prospectus, prospectus supplement or product supplement. Any representation to the contrary is a criminal offense. 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.
BofA Merrill Lynch
Selling Agent
The price to public and net proceeds listed above relate to the notes we sell initially. We may decide to sell additional notes after the date of this pricing supplement, at prices to public and with underwriting discounts and net proceeds that differ from the amounts set forth above. The return (whether positive or negative) on your investment in notes will depend in part on the price to public you pay for such notes.
MLPF&S and any of our other broker-dealer affiliates may use this pricing supplement in the initial sale of the notes. In addition, MLPF&S and any of our other broker-dealer affiliates may use this pricing supplement in a market-making transaction in a note after its initial sale. Unless MLPF&S
or any of our other broker-dealer affiliates informs the purchaser otherwise in the confirmation of sale, this pricing supplement is being used in a market-making transaction.
About Your Prospectus
The notes are unsecured senior notes issued by BofA Finance, a direct, wholly-owned subsidiary of BAC. Payments on the notes are fully and unconditionally guaranteed by the Guarantor. This prospectus includes this pricing supplement and the accompanying documents listed below. This pricing supplement constitutes a supplement to the documents listed below and should be read in conjunction with those documents:
Product supplement EQUITY-1 dated January 24, 2017:
https://www.sec.gov/Archives/edgar/data/70858/000119312517016445/d331325d424b5.htm
Series A MTN prospectus supplement dated November 4, 2016 and prospectus dated November 4, 2016:
https://www.sec.gov/Archives/edgar/data/70858/000119312516760144/d266649d424b3.htm
The information in this pricing supplement supersedes any conflicting information in the documents listed above. In addition, some of the terms or features described in the listed documents may not apply to your notes.
PS-2
Leveraged Buffered Basket-Linked Notes due December 8, 2020
INVESTMENT THESIS
You should be willing to:
● forgo gains greater than a Maximum Settlement Amount of 133.000% of the face amount in exchange for (i) 2.4x leveraged upside participation if the Basket Return is positive and (ii) a buffer against loss of principal in the event of a decline of up to 20.00% in the Final Basket Level relative to the Initial Basket Level.
● forgo interest payments and accept the risk of losing your entire investment in exchange for the potential to earn 240.00% of any positive Basket Return up to a Maximum Settlement Amount of 133.000% of the face amount.
Your maximum return on your notes will not be greater than the return represented by the Maximum Settlement Amount, which such return is 33.000%. You could lose all or a substantial portion of your investment if the Basket Return is less than -20.00%.
DETERMINING THE CASH SETTLEMENT AMOUNT
At maturity, for each $1,000 face amount, the investor will receive (in each case as a percentage of the face amount):
● if the Final Basket Level is greater than 100.00% of the Initial Basket Level, 100.00% plus 240.00% times the Basket Return, subject to a Maximum Settlement Amount of 133.000%;
● if the Final Basket Level is less than or equal to 100.00% of the Initial Basket Level but greater than or equal to 80.00% of the Initial Basket Level, 100.00%; or
● if the Final Basket Level is less than 80.00% of the Initial Basket Level, 100.00% minus 1.25% for every 1.00% that the Final Basket Level has declined below 80.00% of the Initial Basket Level.
If the Final Basket Level declines by more than 20.00% from the Initial Basket Level, the return on the notes will be negative, and the investor could lose their entire investment in the notes.
KEY TERMS
Issuer: | BofA Finance LLC ("BofA Finance") |
Guarantor: | Bank of America Corporation ("BAC") |
The EURO STOXX 50® Index (Bloomberg symbol, "SX5E Index"); the TOPIX® (Bloomberg | |
Basket Underliers: | symbol, "TPX Index"); the FTSE® 100 Index (Bloomberg symbol, "UKX Index"); the Swiss |
Market Index (Bloomberg symbol, "SMI Index"); and the S&P®/ASX 200 Index (Bloomberg | |
symbol, "AS51 Index"). | |
Face Amount: | $2,542,000 in the aggregate; each note will have a face amount equal to $1,000 |
Trade Date: | January 4, 2019 |
Settlement Date: | January 11, 2019 |
Determination Date: | December 4, 2020 |
Stated Maturity Date: | December 8, 2020 |
Initial Weighted Value and | The Initial Weighted Value for each of the Basket Underliers is equal to the product of the initial |
Initial Index Level: | weight of that Basket Underlier times the Initial Basket Level. The initial weight of each Basket |
Underlier is shown in the table below: | |
Initial Index Level: |
The Initial Index Level of each Basket Underlier is shown in the table above.
Basket Underlier | Initial Weight in Basket | Initial Index Level |
EURO STOXX 50® Index | 36.00% | 3,041.85 |
TOPIX® | 27.00% | 1,471.16 |
FTSE® 100 Index | 20.00% | 6,837.42 |
Swiss Market Index | 9.00% | 8,608.56 |
S&P®/ASX 200 Index | 8.00% | 5,619.355 |
PS-3
Final Index Level: | The Final Index Level of each Basket Underlier will be its closing level on the Determination |
Date, subject to the occurrence of certain market disruption events, as described beginning on | |
page PS-8 of this pricing supplement. | |
Initial Basket Level: | 100 |
Final Basket Level: | The sum of the following: (1) the Final Index Level of the EURO STOXX 50® Index divided by |
the Initial Index Level of the EURO STOXX 50® Index, multiplied by the Initial Weighted Value | |
of the EURO STOXX 50® Index plus (2) the Final Index Level of the TOPIX® divided by the | |
Initial Index Level of the TOPIX®, multiplied by the Initial Weighted Value of the TOPIX® plus | |
(3) the Final Index Level of the FTSE® 100 Index divided by the Initial Index Level of the | |
FTSE® 100 Index, multiplied by the Initial Weighted Value of the FTSE® 100 Index plus (4) | |
the Final Index Level of the Swiss Market Index divided by the Initial Index Level of the Swiss | |
Market Index, multiplied by the Initial Weighted Value of the Swiss Market Index plus (5) the | |
Final Index Level of the S&P®/ASX 200 Index divided by the Initial Index Level of the | |
S&P®/ASX 200 Index, multiplied by the Initial Weighted Value of the S&P®/ASX 200 Index. | |
Basket Return: | The quotient of (i) the Final Basket Level minus the Initial Basket Level divided by (ii) the |
Initial Basket Level, expressed as a positive or negative percentage. | |
Upside Participation Rate: | 240.00% |
Buffer Level: | 80.00% of the Initial Basket Level (equal to a -20.00% Basket Return) |
Buffer Amount: | 20.00% |
Buffer Rate: | The quotient of the Initial Basket Level divided by the Buffer Level, which equals 125.00% |
Maximum Settlement Amount: | $1,330.00 for each $1,000 face amount of your notes. |
Cap Level: | 113.75% of the Initial Basket Level. |
CUSIP/ISIN: | 09709TMC2 / US09709TMC26 |
PS-4 |
HYPOTHETICAL PAYMENT AT MATURITY
Hypothetical Final Basket
Level (as % of Initial BasketHypothetical Cash Settlement Amount (as % of Face Amount)
Level)
140.000% 133.000%
130.000% 133.000%
120.000% 133.000%
113.750% 133.000%
110.000% 124.000%
105.000% 112.000%
104.000% 109.600%
102.000% 104.800%
100.000% 100.000%
95.000% 100.000%
90.000% 100.000%
80.000% 100.000%
75.000% 93.750%
50.000% 62.500%
25.000% 31.250%
0.000% 0.000%
RISKS
Please read the section entitled "Risk Factors" of this pricing supplement as well as the risks and considerations described in "Risk Factors" beginning on page PS-5 of the accompanying product supplement, page S-4 of the accompanying prospectus supplement, and page 7 of the accompanying prospectus.
PS-5
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Disclaimer
Bank of America Corporation published this content on 08 January 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 08 January 2019 22:28:06 UTC