Published on 2/4/2022 in the Prospect News Structured Products Daily.
New Issue: BofA prices $2 million contingent income callable yield notes on Dow, Russell, Nasdaq
By Wendy Van Sickle
Columbus, Ohio, Feb. 4 – BofA Finance LLC priced $2 million of contingent income issuer callable yield notes due Feb. 5, 2025 linked to the least performing of the Nasdaq-100 index, the Dow Jones industrial average and the Russell 2000 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 8.5% if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that month.
The notes are callable at par plus any contingent coupon due on any quarterly call observation date after six months.
The payout at maturity will be par unless any index finishes below its 60% threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
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 index, Nasdaq-100 index
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| Amount: | $2,001,000
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| Maturity: | Feb. 5, 2025
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| Coupon: | 8.5% annual rate, payable monthly if each index closes at or above coupon barrier on observation date for that month
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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| Call option: | At par plus any coupon on any quarterly call observation date after six months
|
| Initial levels: | 14,930.05 for Nasdaq, 2,028.453 for Russell, 35,131.86 for Dow
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| Coupon barriers: | 11,197.54 for Nasdaq, 1,521.34 for Russell, 26,348.9 for Dow; 75% of initial levels
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| Downside thresholds: | 8,958.03 for Nasdaq, 1,217.072 for Russell, 2,709.33 for Dow; 60% of initial levels
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| Pricing date: | Jan. 31
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| Settlement date: | Feb. 3
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 0.9%
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| Cusip: | 09709UYC6
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