Published on 2/24/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $2.55 million contingent income issuer callable yield notes on index, ETF
By William Gullotti
Buffalo, N.Y., Feb. 24 – BofA Finance LLC priced $2.55 million of contingent income issuer callable yield notes due Feb. 21, 2025 linked to the worst performing of the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 12.35% if each underlier closes at or above its 70% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon due on any semiannual determination date.
If the notes are not called and each underlier finishes at or above its 70% 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
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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 assets: | S&P 500 index, SPDR S&P Biotech ETF
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| Amount: | $2,551,000
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| Maturity: | Feb. 21, 2025
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| Coupon: | 12.35% annualized rate, payable semiannually 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 semiannual determination date
|
| Initial levels: | $89.39 for ETF, 4,348.87 for S&P
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| Coupon barriers: | $62.57 for ETF, 3,044.21 for S&P; 70% of initial levels
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| Downside thresholds: | $62.57 for ETF, 3,044.21 for S&P; 70% of initial levels
|
| Pricing date: | Feb. 18
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| Settlement date: | Feb. 24
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 1.5%
|
| Cusip: | 09709UZT8
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