Published on 12/14/2021 in the Prospect News Structured Products Daily.
New Issue: BofA sells $610,000 contingent income autocalls on four tech stocks
Chicago, Dec. 14 – BofA Finance LLC priced $610,000 of contingent income autocallable yield notes due April 4, 2024 tied to the least performing of the stocks of Ford Motor Co., Micron Technology, Inc., Southwest Airlines Co. and Norwegian Cruise Line Holdings Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 13% per year if each stock closes at or above its coupon barrier level, 60% of its initial level, on the observation date that period.
The notes will be automatically called at par plus the coupon if each stock closes at or above its initial level on any quarterly call determination date.
If the notes are not called and each stock finishes at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Contingent income autocallable yield notes
|
| Underlying stocks: | Ford Motor Co., Micron Technology, Inc., Southwest Airlines Co. and Norwegian Cruise Line Holdings Ltd.
|
| Amount: | $610,000
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| Maturity: | April 4, 2024
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| Coupon: | 13% per year, payable monthly if each stock closes at or above coupon barrier level on any observation date
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above downside threshold, par plus final coupon; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
|
| Call option: | At par plus coupon if each stock closes at or above its initial level on any quarterly call determination date
|
| Initial levels: | $12.17 for Ford, $92.41 for Micron, $61.30 for Southwest, $27.72 for Norwegian
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| Coupon barriers: | $7.30 for Ford, $55.45 for Micron, $36.78 for Southwest, $16.63 for Norwegian; 60% of initial levels
|
| Downside threshold levels: | $7.30 for Ford, $55.45 for Micron, $36.78 for Southwest, $16.63 for Norwegian; 60% of initial levels
|
| Pricing date: | April 1
|
| Settlement date: | April 7
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| Agent: | BofA Securities, Inc.
|
| Fees: | 3.2%
|
| Cusip: | 09709UFU7
|
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