Published on 2/16/2021 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1 million contingent income autocallable yield notes on index, ETFS
By Kiku Steinfeld
Chicago, Feb. 16 – BofA Finance LLC priced $1 million of contingent income autocallable yield notes due Feb. 9, 2026 linked to the worst performing of the SPDR S&P Regional Banking ETF, the Energy Select Sector SPDR fund and the Euro Stoxx Bank index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 9% if each underlying asset closes at or above its 65% coupon barrier on the observation date for that month.
The notes will be called at par on if each asset closes above its initial level on any quarterly call date.
The payout at maturity will be par unless any asset finishes below its 65% threshold level, in which case investors will be fully exposed to any losses of the worst performing asset.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the selling agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income autocallable yield notes
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| Underlying assets: | SPDR S&P Regional Banking ETF, Energy Select Sector SPDR fund and Euro Stoxx Bank index
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| Amount: | $1 million
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| Maturity: | Feb. 9, 2026
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| Coupon: | 9% annualized, payable monthly if each asset closes at or above its coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | If each asset finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing asset
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| Call: | At par if each asset closes above its initial level on any quarterly call date
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| Initial levels: | $59.05 for S&P, $42.20 for Energy, 76.17 for Stoxx
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| Coupon barriers: | $38.38 for S&P, $27.43 for Energy, 49.51 for Stoxx, 65% of initial levels
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| Downside thresholds: | $38.38 for S&P, $27.43 for Energy, 49.51 for Stoxx, 65% of initial levels
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| Pricing date: | Feb. 4
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| Settlement date: | Feb. 9
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 3.75%
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| Cusip: | 09709UBN7
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