Published on 8/24/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.88 million contingent income buffered autocalls on stocks
By Sarah Lizee
Olympia, Wash., Aug. 24 – BofA Finance LLC priced $1.88 million of contingent income buffered autocallable securities due Aug. 24, 2022 linked to the lesser performing of the common stocks of CarMax, Inc., MetLife, Inc., Stanley Black & Decker, Inc. and TJX Cos., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
Each month, the notes will pay a contingent coupon at the rate of 10% per year if each underlier closes at or above its coupon barrier, 70% of its initial level, on the determination date for that period.
Starting in February 2021, the notes will be automatically called at par if each underlier closes at or above its initial level on any quarterly determination date.
The payout at maturity will be par unless either underlier finishes below its 70% buffer level, in which case investors will lose 1% for every 1% that the lesser-performing underlier declines beyond 30%.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income buffered autocallable securities
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| Underliers: | CarMax, Inc., MetLife, Inc., Stanley Black & Decker, Inc. and TJX Cos., Inc.
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| Amount: | $1,875,000
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| Maturity: | Aug. 24, 2022
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| Coupon: | 10% per year, payable monthly if each underlier closes at or above coupon barrier level on determination date
|
| Price: | Par
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| Payout at maturity: | Par unless either underlier finishes below buffer level, in which case 1% loss for every 1% that lesser-performing underlier declines beyond buffer
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| Call: | Starting in February 2021, automatically at par if each underlier closes at or above initial level on any quarterly determination date
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| Initial levels: | $106.78 for CarMax, $38.20 for MetLife, $158.97 for Stanley, $54.36 for TJX
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| Coupon barriers: | $74.75 for CarMax, $26.74 for MetLife, $111.28 for Stanley, $38.05 for TJX; 70% of initial levels
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| Buffer levels: | $74.75 for CarMax, $26.74 for MetLife, $111.28 for Stanley, $38.05 for TJX; 70% of initial levels
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| Pricing date: | Aug. 19
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| Settlement date: | Aug. 24
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| Agent: | BofA Securities, Inc.
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| Fees: | 3.39%
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| Cusip: | 09709TM32
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