By William Gullotti
Buffalo, N.Y., March 20 – BofA Finance LLC priced $1.6 million of contingent income (with memory feature) issuer callable yield notes due March 18, 2027 linked to the stock performance of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 16.5001% if the stock closes at or above its 60% coupon barrier on the observation date for that period. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
After three months, the notes will be callable at par plus any coupon otherwise due on any monthly determination date.
The payout at maturity will be par plus the final coupon if the stock finishes at or above the coupon barrier.
If the stock finishes below the coupon barrier but at or above its 50% threshold level, the payout will be par. Otherwise, investors will be fully exposed to the stock’s decline 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 (with memory feature) issuer callable yield notes
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| Underlying stock: | Tesla, Inc.
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| Amount: | $1,596,000
|
| Maturity: | March 18, 2027
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| Coupon: | 16.5001% annualized rate, payable monthly if the stock closes at or above its coupon barrier on observation date for that period; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | If the stock finishes at or above coupon barrier, par plus final coupon; if stock finishes below coupon barrier but at or above downside threshold, par; otherwise, 1% loss for each 1% decline from initial level
|
| Call option: | At par plus any coupon otherwise due on any monthly determination date after three months
|
| Initial level: | $162.50
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| Coupon barrier: | $97.50; 60% of initial levels
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| Downside threshold: | $81.25; 50% of initial levels
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| Pricing date: | March 14
|
| Settlement date: | March 19
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 0.25%
|
| Cusip: | 09711BAJ5
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