Published on 1/26/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $4.42 million contingent income autocallable yield notes on three indexes
Chicago, Jan. 26 – BofA Finance LLC priced $4.42 million of contingent income autocallable yield notes due Oct. 23, 2026 linked to the worst performing of the Dow Jones industrial average, the S&P 500 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 6.25% if each underlying index closes at or above its 80% coupon barrier on the observation date for that period.
The notes will automatically be called at par plus the contingent coupon payment if all three indexes close above their initial levels on any quarterly observation date after one year.
The payout at maturity will be par plus any coupon due if the worst performer finishes above its 70% threshold level.
Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the selling agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Contingent income autocallable yield notes
|
| Underlying indexes: | Dow Jones industrial average, S&P 500 index, Nasdaq-100 index
|
| Amount: | $4,420,000
|
| Maturity: | Oct. 23, 2026
|
| Coupon: | 6.25% annualized rate, payable monthly if each index closes at or above its coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above threshold level, par plus any final coupon; otherwise, 1% loss for each 1% decline of worst performer from initial level
|
| Call: | Automatically at par plus coupon if all indexes close above initial levels on any quarterly observation date after one year
|
| Initial levels: | 34,715.39 for Dow, 4,482.73 for S&P, 14,846.46 for Nasdaq
|
| Coupon barriers: | 27,772.31 for Dow, 3,586.18 for S&P, 11,877.17 for Nasdaq; 80% of initial levels
|
| Downside thresholds: | 24,300.77 for Dow, 3,137.91 for S&P, 10,392.52 for Nasdaq; 70% of initial levels
|
| Pricing date: | Jan. 20
|
| Settlement date: | Jan. 25
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 3.6%
|
| Cusip: | 09709UYP7
|
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