Published on 11/19/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.17 million contingent income buffered autocalls on stocks
By Taylor Fox
New York, Nov. 19 – BofA Finance LLC priced $1.17 million of contingent income buffered autocallable securities due Nov. 2, 2023 linked to the lesser performing of the common stocks of D.R. Horton, Inc., Lennar Corp., Micron Technology, Inc. and Regeneron Pharmaceuticals, 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 13.8% per year if each stock closes at or above its coupon barrier, 70% of its initial level, on the determination date for that period.
Starting in April 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 any stock finishes below its 70% threshold level, in which case investors will lose 1% for every 1% that the lesser-performing stock declines from its initial level.
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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| Underlying stocks: | D.R. Horton, Inc., Lennar Corp., Micron Technology, Inc. and Regeneron Pharmaceuticals, Inc.
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| Amount: | $1,171,000
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| Maturity: | Nov. 2, 2023
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| Coupon: | 13.8% per year, payable monthly if each stock closes at or above coupon barrier level on determination date
|
| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below threshold level, in which case 1% loss for every 1% that lesser-performing underlier declines from initial level
|
| Call: | Starting in April 2021, automatically at par if each stock closes at or above initial level on any quarterly determination date
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| Initial levels: | $66.81 for D.R., $70.23 for Lennar, $50.34 for Micron and $543.56 for Regeneron
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| Coupon barriers: | $46.77 for D.R., $49.16 for Lennar, $35.24 for Micron and $380.49 for Regeneron; 70% of initial levels
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| Threshold levels: | $46.77 for D.R., $49.16 for Lennar, $35.24 for Micron and $380.49 for Regeneron; 70% of initial levels
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| Pricing date: | Oct. 30
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| Settlement date: | Nov. 4
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| Agent: | BofA Securities, Inc.
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| Fees: | 3.5%
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| Cusip: | 09709TZ46
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