Published on 1/28/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $2.37 million contingent income issuer callable yield notes on three SPDR ETFs
By William Gullotti
Buffalo, N.Y., Jan. 28 – BofA Finance LLC priced $2.37 million of contingent income issuer callable yield notes due Jan. 30, 2024 linked to the performance of the SPDR S&P Biotech ETF, the Industrial Select Sector SPDR Fund 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 13.2% if each underlying ETF closes at or above its 65% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon otherwise due 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 65% downside threshold level, in which case investors will be fully exposed to the decline of the worst performing ETF from its initial level.
The notes are 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 issuer callable yield notes
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Underlying funds: | Industrial Select Sector SPDR Fund, SPDR S&P Regional Banking ETF, SPDR S&P Biotech ETF
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Amount: | $2,374,000
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Maturity: | Jan. 30, 2024
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Coupon: | 13.2% annualized rate, payable quarterly if each ETF closes at or above its coupon barrier on observation date for that period
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Price: | Par
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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 from initial level
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Call option: | At par plus any coupon otherwise due on any quarterly determination date after six months
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Initial levels: | $91.38 for Biotech, $100.78 for Industrial, $72.55 for Banking
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Coupon barriers: | $59.40 for Biotech, $65.51 for Industrial, $47.16 for Banking; 65% of initial levels
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Downside thresholds: | $59.40 for Biotech, $65.51 for Industrial, $47.16 for Banking; 65% of initial levels
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Pricing date: | Jan. 25
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Settlement date: | Jan. 28
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Selling agent: | BofA Securities, Inc.
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Fees: | 1.75%
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Cusip: | 09709UZE1
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