Published on 3/7/2022 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1 million contingent income callable yield notes on stocks
By Kiku Steinfeld
Chicago, March 7 – BofA Finance LLC priced $1 million of contingent income issuer callable yield notes due Sept. 19, 2024 linked to the least performing of the shares of Amazon.com, Inc., Apple Inc., Alphabet Inc. and Nvidia Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 14% if each stock closes at or above its coupon barrier, 70% of its initial level, on the observation date for that month.
The notes are callable at par plus any contingent coupon on any quarterly call observation date after six months.
The payout at maturity will be par unless any stock finishes below its 60% threshold level, in which case investors will be fully exposed to the losses of the worst performing stock.
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 stocks: | Amazon.com, Inc., Apple Inc., Alphabet Inc. and Nvidia Corp.
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| Amount: | $1 million
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| Maturity: | Sept. 19, 2024
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| Coupon: | 14% annual rate, payable monthly if each stock closes at or above coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise 1% loss for each 1% decline of worst performing stock
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| Call option: | At par plus any coupon on any quarterly call observation date after six months
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| Initial levels: | $2,850.89 for Alphabet, $2,850.89 for Amazon, $148.12 for Apple, $222.42 for Nvidia
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| Coupon barriers: | $1,995.62 for Alphabet, $2,415 for Amazon, $103.68 for Apple, $155.69 for Nvidia, 70% of initial levels
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| Downside thresholds: | $1,710.53 for Alphabet, $2,070 for Amazon, $88.87 for Apple, $133.45 for Nvidia, 60% of initial levels
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| Pricing date: | Sept. 14
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| Settlement date: | Sept. 17
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 0.6%
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| Cusip: | 09709URU4
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