Published on 11/2/2020 in the Prospect News Structured Products Daily.
New Issue: BofA sells $23.97 million one-year Stars linked to S&P 500 index
By Marisa Wong
Los Angeles, Nov. 2 – BofA Finance LLC priced $23.97 million of 0% Strategic Accelerated Redemption Securities due Nov. 12, 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
BofA priced 2,398,924 units with a $10 par amount each and sold 950,000 units at a discount to an individual investor.
The notes will be called at par plus a premium of 8.5% per year if the closing level of the index is greater than or equal to its starting value on any of three quarterly observation dates after six months.
If the notes are not called, investors will lose 1% for each 1% decline in the index.
BofA Securities, Inc. is the agent.
Issuer: | BofA Finance LLC
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Guarantor: | Bank of America Corp.
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Issue: | Strategic Accelerated Redemption Securities
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Underlying index: | S&P 500 index
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Principal amount: | $23,989,240 (2,398,924 units with $10 face amount each)
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Amount: | $23,965,490
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Maturity: | Nov. 12, 2021
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Coupon: | 0%
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Price: | $9.975 per unit for 950,000 units sold to individual investor, par of $10 for remainder sold to public
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Payout at maturity: | Full exposure to any index decline
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Call: | At par plus premium of 8.5% per year if index closes at or above its initial value on any of three quarterly observation dates after six months
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Initial value: | 3,310.11
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Pricing date: | Oct. 29
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Settlement date: | Nov. 5
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Agent: | BofA Securities, Inc.
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Fees: | 1% for units sold to individual investor, 1.25% for units sold to public
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Cusip: | 09710C782
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