Published on 8/19/2021 in the Prospect News Structured Products Daily.
New Issue: BofA sells $7.08 million contingent income issuer callable yield notes on indexes
By William Gullotti
Buffalo, N.Y., Aug. 19 – BofA Finance LLC priced $7.08 million of contingent income issuer callable yield notes due May 16, 2023 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly 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 period.
The notes are callable at par on any quarterly determination date.
The payout at maturity will be par unless any underlying finishes below its 65% threshold level, in which case investors will be fully exposed to any losses of the worst performer.
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 issuer callable yield notes
|
| Underlying assets: | Nasdaq-100 index, Russell 2000 and SPDR S&P Regional Banking ETF
|
| Amount: | $7,080,000
|
| Maturity: | May 16, 2023
|
| Coupon: | 9% annualized rate, payable quarterly if each underlying closes at or above its coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each asset finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performer
|
| Call option: | At par on any quarterly determination date
|
| Initial levels: | 13,351.27 for Nasdaq, 2,206.987 for Russell and $69.43 for ETF
|
| Coupon barrier levels: | 8,678.33 for Nasdaq, 1,434.542 for Russell and $45.13 for ETF, 65% of initial levels
|
| Downside threshold levels: | 8,678.33 for Nasdaq, 1,434.542 for Russell and $45.13 for ETF, 65% of initial levels
|
| Pricing date: | May 11
|
| Settlement date: | May 14
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 1.75%
|
| Cusip: | 09709UKW7
|
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