Published on 6/6/2021 in the Prospect News Structured Products Daily.
New Issue: BofA sells $540,000 contingent income autocallable yield notes on ARK ETFs
By William Gullotti
Buffalo, N.Y., June 7 – BofA Finance LLC priced $540,000 of contingent income autocallable yield notes due May 17, 2023 linked to the worst performing of the ARK Innovation ETF, the ARK Genomic Revolution ETF and the ARK Fintech Innovation ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 15% if each underlying ETF closes at or above its 70% coupon barrier on the observation date for that period.
The notes will be called at par plus the coupon if each ETF closes above its initial level on any quarterly determination date after six months.
The payout at maturity will be par plus the final coupon unless any ETF finishes below its 70% threshold level, in which case investors will be fully exposed to any losses of the worst performing ETF.
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.
|
| Issue: | Contingent income autocallable yield notes
|
| Underlying funds: | ARK Innovation ETF, ARK Genomic Revolution ETF, ARK Fintech Innovation ETF
|
| Amount: | $540,000
|
| Maturity: | May 17, 2023
|
| Coupon: | 15% annualized, payable monthly if each ETF closes at or above its coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each ETF finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing ETF
|
| Call: | At par plus coupon if each ETF closes above its initial level on any quarterly determination date after six months
|
| Initial levels: | $45.85 for Fintech, $74.99 for Genomic, $102.16 for Innovation
|
| Coupon barriers: | $32.10 for Fintech, $52.49 for Genomic, $71.51 for Innovation; 70% of initial levels
|
| Downside thresholds: | $32.10 for Fintech, $52.49 for Genomic, $71.51 for Innovation; 70% of initial levels
|
| Pricing date: | May 12
|
| Settlement date: | May 17
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 3%
|
| Cusip: | 09709UKR8
|
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