Published on 2/23/2021 in the Prospect News Structured Products Daily.
New Issue: BofA prices $2 million contingent income autocallable yield notes on tech stocks
By Kiku Steinfeld
Chicago, Feb. 23 – BofA Finance LLC priced $2 million of contingent income autocallable yield notes due Feb. 19, 2026 linked to the worst performing of the common stocks of Amazon.com, Inc., Apple Inc., Alphabet Inc. and Netflix, Inc.., according to a 424B2 with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 12.5% if each stock closes at or above its 60% coupon barrier on the related determination date.
The notes will be automatically redeemed at par if each stock closes above its initial value on any quarterly call observation date after six quarters.
The payout at maturity will be par plus the coupon if both stocks close above their 60% trigger values.
Otherwise, investors will be fully exposed to any losses of the worst performing stock.
The notes will be 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 stocks: | Amazon.com, Inc., Apple Inc., Alphabet Inc. and Netflix, Inc.
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| Amount: | $2 million
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| Maturity: | Feb. 19, 2026
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| Coupon: | 12.5% annual rate if each stock closes at or above its coupon barrier on the related determination date; payable quarterly
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| Price: | Par
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| Payout at maturity: | Par plus the coupon if all stocks close above their trigger values; otherwise, investors will be fully exposed to the losses of the worst performing stock
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| Call: | Automatically at par if each stock closes at or above its initial value on any quarterly call observation date after six quarters
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| Initial levels: | $3,268.95 for Amazon, $133.19 for Apple, $2,110.70 for Alphabet, $557.28 for Netflix
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| Coupon barriers/triggers: | $1,961.37 for Amazon, $79.91 for Apple, $1,266.42 for Alphabet, $334.37 for Netflix; 60% of initial levels
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| Pricing date: | Feb. 16
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| Settlement date: | Feb. 19
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 2.85%
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| Cusip: | 09709UCF3
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