Published on 4/27/2021 in the Prospect News Structured Products Daily.
New Issue: BofA prices $25.46 million trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, April 27 – BofA Finance LLC priced $25.46 million of trigger callable contingent yield notes due April 25, 2024 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
Each quarter, the notes pay a contingent coupon at a rate of 9% per year if each index closes at or above its coupon barrier, 70% of its initial value, on the observation date for 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 value, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the least-performing index’s final value is below its initial value.
BofA Securities, Inc. is the underwriter, and UBS Financial Services Inc. is the selling agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | Euro Stoxx 50 index, Russell 2000 index and S&P 500 index
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| Amount: | $25,462,000
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| Maturity: | April 25, 2024
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| Coupon: | 9% per year, payable each quarter that each index closes at or above its coupon barrier on related quarterly observation date
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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, full exposure to decline of least-performing index below its initial value
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| Call option: | At par plus any coupon due on any quarterly coupon payment date
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| Initial values: | 3,976.41 for Euro Stoxx 50, 2,239.6274 for Russell, 4,173.42 for S&P
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| Coupon barriers: | 2,783.49 for Euro Stoxx 50, 1,567.739 for Russell, 2,921.39 for S&P; 70% of initial values
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| Downside thresholds: | 2,584.67 for Euro Stoxx 50, 1,455.758 for Russell, 2,712.72 for S&P; 65% of initial values
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| Pricing date: | April 21
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| Settlement date: | April 26
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| Underwriter: | BofA Securities, Inc. with UBS Financial Services Inc.as selling agent
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| Fees: | 1%
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| Cusip: | 09710E861
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