Published on 12/14/2021 in the Prospect News Structured Products Daily.
New Issue: BofA sells $813,000 contingent income issuer callable yield notes on three indexes
Chicago, Dec. 14 – BofA Finance LLC priced $813,000 of contingent income issuer callable yield notes due April 7, 2026 linked to the worst performing of the Russell 2000 index, 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 underlying index closes at or above its 70% coupon barrier on the relevant observation date.
The notes may be called on any quarterly payment date starting after one year at the issuer’s option at par plus any coupon.
The payout at maturity will be par plus any final coupon due if each index finishes at or above its 60% threshold level.
Otherwise, investors will be fully exposed to any losses of the worst performing index.
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: | Russell 2000 index, Dow Jones industrial average, S&P 500
|
| Amount: | $813,000
|
| Maturity: | April 7, 2026
|
| Coupon: | 7% annualized, payable quarterly if each index closes at or above its coupon barrier on the corresponding observation date
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par plus any final coupon; otherwise, 1% loss for each 1% decline of worst performing index from its initial level
|
| Call option: | At par plus any coupon at option of issuer on quarterly payment dates after one year
|
| Initial levels: | 33,153.21 for Dow, 2,253.903 for Russell, 4,019.87 for S&P
|
| Coupon barrier levels: | 23,207.25 for Dow, 1,577.732 for Russell, 2,813.91 for S&P; 70% of initial levels
|
| Downside thresholds: | 19,891.93 for Nasdaq, 1,352.342 for Russell, 2,411.92 for S&P; 60% of initial levels
|
| Pricing date: | April 1
|
| Settlement date: | April 7
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 0.725%
|
| Cusip: | 09709UEY0
|
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