Published on 2/4/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.84 million contingent income issuer callable yield notes on index, ETFs
By William Gullotti
Buffalo, N.Y., Feb. 4 – BofA Finance LLC priced $1.84 million of contingent income issuer callable yield notes due Feb. 5, 2024 linked to the worst performing of the SPDR S&P Biotech ETF, 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 11.1% if each underlier closes at or above its 60% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon due on any quarterly determination date.
If the notes are not called and each underlier finishes at or above its 60% downside threshold 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 selling agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable yield notes
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| Underlying assets: | SPDR S&P Biotech ETF, Russell 2000 index, SPDR S&P Regional Banking ETF
|
| Amount: | $1,838,000
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| Maturity: | Feb. 5, 2024
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| Coupon: | 11.1% annualized rate, payable quarterly if each underlier closes at or above its coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If the final level of each underlier is greater than or equal to downside threshold, par plus final coupon; otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level
|
| Call option: | At par plus any coupon due on any quarterly determination date
|
| Initial levels: | $93.43 for Biotech ETF, $71.60 for Banking ETF, 2,028.453 for Russell
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| Coupon barriers: | $56.06 for Biotech ETF, $42.96 for Banking ETF, 1,217.072 for Russell; 60% of initial levels
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| Downside thresholds: | $56.06 for Biotech ETF, $42.96 for Banking ETF, 1,217.072 for Russell; 60% of initial levels
|
| Pricing date: | Jan. 31
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| Settlement date: | Feb. 3
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| Selling agent: | BofA Securities, Inc.
|
| Fees: | 1.75%
|
| Cusip: | 09709UA32
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