Published on 2/21/2021 in the Prospect News Structured Products Daily.
New Issue: BofA prices $3.13 million contingent income buffered callable yield notes on Dow, S&P
By Taylor Fox
New York, Feb. 22 – BofA Finance LLC priced $3.13 million of contingent income buffered issuer callable yield notes due Feb. 15, 2024 linked to the least performing of the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7% if each index closes at or above its coupon barrier, 76% of its initial level, on the observation date for that period.
The notes are callable at par plus any contingent coupon on any quarterly call observation date after six months.
The payout at maturity will be par plus the coupon unless any index finishes below its 76% threshold level, in which case investors will lose 1.31578947% for every 1% that the worst performing index decline beyond the 24% buffer.
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 buffer issuer callable yield notes
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| Underlying indexes: | Dow Jones industrial average and the S&P 500 index
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| Amount: | $3,128,000
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| Maturity: | Feb. 15, 2024
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| Coupon: | 7% annual rate, payable quarterly if each index closes at or above coupon barrier on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above buffer level, par plus coupon; otherwise, 1.31578947% loss for each 1% decline of worst performing index beyond 24% buffer
|
| Call option: | At par plus any coupon on any quarterly call observation date after six months
|
| Initial levels: | 31,437.80 for Dow and 3,909.88 for S&P
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| Coupon barriers: | 23,892.73 for Dow and 2,971.51 for S&P, 76% of initial levels
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| Buffer levels: | 23,892.73 for Dow and 2,971.51 for S&P, 76% of initial levels
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| Pricing date: | Feb. 10
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| Settlement date: | Feb. 16
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| Selling agent: | BofA Securities, Inc.
|
| Fees: | 0.25%
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| Cusip: | 09709UCL0
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