Published on 12/23/2021 in the Prospect News Structured Products Daily.
New Issue: BofA sells $2.84 million contingent income issuer callable yield notes on three indexes
By William Gullotti
Buffalo, N.Y., Dec. 23 – BofA Finance LLC priced $2.84 million of contingent income issuer callable yield notes due Sept. 3, 2026 linked to the worst performing of the Dow Jones industrial average, 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 monthly coupon at an annual rate of 7.5% if each underlying index closes at or above its 75% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon otherwise due on any quarterly determination date after six months.
The payout at maturity will be par plus the final coupon if each index finishes at or above its coupon barrier.
If the worst performer finishes below its coupon barrier but at or above its 60% threshold level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst performing index from its initial level.
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 indexes: | Dow Jones industrial average, Russell 2000, Nasdaq-100 index
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| Amount: | $2,837,000
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| Maturity: | Sept. 3, 2026
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| Coupon: | 7.5% annualized rate, payable monthly if each index closes at or above its coupon barrier on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index from initial level
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| Call option: | At par plus any coupon due on any quarterly determination date after six months
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| Initial levels: | 34,483.72 for Dow, 2,198.908 for Russell, 16,135.92 for Nasdaq
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| Coupon barriers: | 25,862.79 for Dow, 1,649.181 for Russell, 12,101.94 for Nasdaq; 75% of initial levels
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| Downside thresholds: | 20,690.23 for Dow, 1,319.345 for Russell, 9,681.55 for Nasdaq; 60% of initial levels
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| Pricing date: | Nov. 30
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| Settlement date: | Dec. 3
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 0.9%
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| Cusip: | 09709UVF2
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