Published on 10/1/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $295,000 contingent income callable yield notes on funds
By Wendy Van Sickle
Columbus, Ohio, Oct. 1 – BofA Finance LLC priced $295,000 of contingent income issuer callable yield notes due Sept. 29, 2022 linked to the least performing of the Energy Select Sector SPDR fund, the Financial Select Sector SPDR fund and the Industrial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.05% if each fund closes at or above its coupon barrier, 55% of its initial level, on the observation date for that period.
The notes are callable at par plus the contingent coupon on any observation date after six months other than the final one.
The payout at maturity will be par plus any coupon due unless any fund finishes below its 55% threshold level, in which case investors will be fully exposed to any losses of the worst performing fund.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the selling agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable yield notes
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| Underlying funds: | Energy Select Sector SPDR fund, Financial Select Sector SPDR fund and Industrial Select Sector SPDR fund
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| Amount: | $295,000
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| Maturity: | Sept. 29, 2022
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| Coupon: | 8.05% annual rate, payable quarterly if each fund closes at or above coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each fund finishes at or above downside threshold, par plus any coupon due; otherwise 1% loss for each 1% decline of worst performing fund
|
| Call option: | At par plus coupon on any observation date after six months
|
| Initial levels: | $30.18 for Energy, $23.49 for Financial, $76.49 for Industrial
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| Coupon barriers: | $16.60 for Energy, $12.92 for Financial, $42.07 for Industrial, 55% of initial levels
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| Downside thresholds: | $16.60 for Energy, $12.92 for Financial, $42.07 for Industrial, 55% of initial levels
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 30
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| Selling agent: | BofA Securities, Inc.
|
| Fees: | 1.75%
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| Cusip: | 09709TU58
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