Published on 10/3/2020 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.52 million contingent income autocallables tied to Russell, Nasdaq
By Taylor Fox
New York, Oct. 5 – BofA Finance LLC priced $1.52 million of contingent income autocallable notes due March 17, 2022 linked to the worst performing of the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 6.6% if each underlying asset closes at or above its 70% coupon barrier on the observation date.
The notes will be called at par if each asset closes at or above its initial level on any quarterly observation date starting in March 2021.
The payout at maturity will be par unless either underlying asset finishes below its 65% threshold level, in which case investors will be fully exposed to any losses of the worse performing asset.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income autocallable notes
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| Underlying assets: | Russell 2000 index and the Nasdaq-100 index
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| Amount: | $1,520,000
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| Maturity: | March 17, 2022
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| Coupon: | 6.6% annualized, payable quarterly if each asset closes at or above its coupon barrier on related observation date
|
| Price: | Par
|
| Payout at maturity: | If each asset finishes at or above threshold level, par plus coupon; otherwise, 1% loss for each 1% decline of worse performing asset
|
| Call: | At par if each component closes at or above its initial level on any quarterly observation date starting in March 2021
|
| Initial levels: | 1,536.974 for Russell and 11,277.76 for Nasdaq
|
| Coupon barriers: | 1,075.882 for Russell and 7,894.43 for Nasdaq, 70% of initial levels
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| Threshold levels: | 999.033 for Russell and 7,330.54 for Nasdaq, 65% of initial levels
|
| Pricing date: | Sept. 14
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| Settlement date: | Sept. 17
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| Underwriter: | BofA Securities, Inc.
|
| Fees: | 1.5%
|
| Cusip: | 09709TS51
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