Published on 3/16/2022 in the Prospect News Structured Products Daily.
New Issue: BofA prices $2.1 million contingent income buffered callable yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, March 16 – BofA Finance LLC priced $2.1 million of contingent income buffered issuer callable yield notes due March 16, 2026 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 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 10.35% if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that period.
The notes are callable at par plus any contingent coupon on any monthly call observation date after six months.
The payout at maturity will be par plus the coupon unless any index finishes below its 75% threshold level, in which case investors will lose 1.3333% for every 1% that the worst performing index declines beyond 25%.
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 buffered issuer callable yield notes
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Underlying indexes: | Russell 2000 index, S&P 500 index, Nasdaq-100 index
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Amount: | $2.1 million
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Maturity: | March 16, 2026
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Coupon: | 10.35% annual rate, payable monthly if each index closes at or above 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 threshold level, par plus coupon; otherwise, 1.3333% loss for each 1% decline of worst performing index beyond 25%
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Call option: | At par plus any coupon on any monthly call observation date after six months
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Initial levels: | 13,301.83 for Nasdaq, 1,979.668 for Russell, 4,204.31 for S&P
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Coupon barrier levels: | 9,976.37 for Nasdaq, 1,484.751 for Russell, 3,153.23 for S&P; 75% of initial levels
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Threshold levels: | 9,976.37 for Nasdaq, 1,484.751 for Russell, 3,153.23 for S&P; 75% of initial levels
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Pricing date: | March 11
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Settlement date: | March 16
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Selling agent: | BofA Securities, Inc.
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Fees: | 0.3%
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Cusip: | 09709UG77
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