Published on 12/16/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1 million contingent income autocallable yield notes on indexes
By Taylor Fox
New York, Dec. 16 – BofA Finance LLC priced $1 million of contingent income autocallable yield notes due Dec. 13, 2021 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 5.75% if each index closes at or above its coupon barrier, 65% of its initial level, on the observation date for that period. Previously unpaid coupons will also be paid.
The notes will be called at par plus the contingent coupon if all indexes close above their starting level on June 8, 2021.
The payout at maturity will be par any final coupon due unless any index finishes below its 65% threshold level, in which case investors will be fully exposed to the losses of the worst performing index.
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.
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| Issue: | Contingent income autocallable yield notes
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index, S&P 500 index
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| Amount: | $1 million
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| Maturity: | Dec. 13, 2021
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| Coupon: | 5.75% annual rate, payable semiannually if each index closes at or above coupon barrier on observation date for that period; previously unpaid coupons will also be paid
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call: | At par plus coupon if all indexes close above initial level on June 8, 2021
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| Initial levels: | 3,702.25 for S&P, 12,635.72 for Nasdaq, 1,917.782 for Russell
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| Coupon barriers: | 2,406.46 for S&P, 8,213.22 for Nasdaq, 1,246.558 for Russell, 65% of initial levels
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| Downside thresholds: | 2,406.46 for S&P, 8,213.22 for Nasdaq, 1,246.558 for Russell, 65% of initial levels Pricing date: | Dec. 8
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| Settlement date: | Dec. 11
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 0.75%
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| Cusip: | 09709T3V1
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