Published on 9/18/2020 in the Prospect News Structured Products Daily.
New Issue: BofA sells $12.68 million trigger callable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 18 – BofA Finance LLC priced $12.68 million of trigger callable contingent yield notes with daily coupon observation due Sept. 20, 2021 linked to the least performing of the Euro Stoxx 50 index, the Nasdaq-100 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at a rate of 10% per year if each index closes at or above its coupon barrier, 65% of its initial level, on every day that quarter.
The notes are callable at par of $10 plus any coupon due on any quarterly coupon payment date.
If the notes are not called and each index finishes at or above its downside threshold, 65% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final level is below its initial level.
The notes are guaranteed by Bank of America Corp.
UBS Financial Services Inc. and BofA Securities, Inc. are the agents.
Issuer: | BofA Finance LLC
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Guarantor: | Bank of America Corp.
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Issue: | Trigger callable contingent yield notes with daily coupon observation
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Underlying indexes: | Euro Stoxx 50, Nasdaq-100 and S&P 500
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Amount: | $12,677,000
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Maturity: | Sept. 20, 2021
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Coupon: | 10% per year, payable quarterly if each index closes at or above its coupon barrier on each day that quarter
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Price: | Par of $10
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Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for every 1% that least-performing index’s final level is below initial level
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Call option: | At par plus any coupon due on any quarterly coupon payment date
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Initial levels: | 3,383.54 for S&P, 1,536.974 for Russell 2000 and 11,277.76 for Nasdaq
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Coupon barriers: | 2,199.3 for S&P, 999.033 for Russell 2000 and 7,330.54 for Nasdaq, or 65% of initial levels
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Downside thresholds: | 2,199.3 for S&P, 999.033 for Russell 2000 and 7,330.54 for Nasdaq, or 65% of initial levels
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Pricing date: | Sept. 14
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Settlement date: | Sept. 17
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Agents: | UBS Financial Services Inc. and BofA Securities, Inc.
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Fees: | 1%
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Cusip: | 05591G421
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