Published on 3/23/2022 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.81 million contingent income callable yield notes on S&P, Biotech ETF
By Wendy Van Sickle
Columbus, Ohio, March 23 – BofA Finance LLC priced $1.81 million of contingent income issuer callable yield notes due March 21, 2025 linked to the least performing of the S&P 500 index and the SPDR S&P Biotech exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 11.5% if each asset closes at or above its coupon barrier, 70% of its initial level, on the observation date for that period.
The notes are callable at par plus any contingent coupon on any semiannual observation date other than the final one.
The payout at maturity will be par plus any coupon due unless any asset finishes below its 70% threshold level, in which case investors will be fully exposed to any losses of the worst performing asset.
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 assets: | S&P 500 index and SPDR S&P Biotech ETF
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| Amount: | $1,813,000
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| Maturity: | March 21, 2025
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| Coupon: | 11.5% annual rate, payable semiannually if each asset 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 asset finishes at or above downside threshold, par plus any coupon; otherwise 1% loss for each 1% decline of worst performing index
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| Call option: | At par plus any coupon on any semiannual observation date other than final one
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| Initial levels: | $92.16 for ETF, 4,463.12 for S&P
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| Coupon barriers: | $64.51 for ETF, 3,124.18 for S&P, 70% of initial levels
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| Downside thresholds: | $64.51 for ETF, 3,124.18 for S&P, 70% of initial levels
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| Pricing date: | March 18
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| Settlement date: | March 23
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 1.5%
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| Cusip: | 09709UD39
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