Published on 4/14/2021 in the Prospect News Structured Products Daily.
New Issue: BofA prices $15.01 million trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, April 14 – BofA Finance LLC priced $15.01 million of trigger callable contingent yield notes due April 12, 2024 linked to the least performing of the MSCI Emerging Markets 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 8.85% 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, 60% 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
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| Guarantor: | Bank of America Corp.
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| Issue: | Trigger callable contingent yield notes
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| Underlying indexes: | MSCI Emerging Markets index, Russell 2000 index and S&P 500 index
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| Amount: | $15,013,850
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| Maturity: | April 12, 2024
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| Coupon: | 8.85% 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: | 1,330.36 for MSCI Emerging Markets, 2,243.474 for Russell, 4,128.8 for S&P
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| Coupon barriers: | 931.25 for MSCI Emerging Markets, 1,570.432 for Russell, 2,890.16 for S&P; 70% of initial values
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| Downside thresholds: | 798.22 for MSCI Emerging Markets, 1,346.084 for Russell, 2,4777.28 for S&P; 60% of initial values
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| Pricing date: | April 9
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| Settlement date: | April 12
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| Underwriter: | BofA Securities, Inc. with UBS Financial Services Inc.as selling agent
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| Fees: | 1.25%
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| Cusip: | 09710E879
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