Published on 4/4/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.34 million contingent income issuer callable yield notes on three indexes
By William Gullotti
Buffalo, N.Y., April 4 – BofA Finance LLC priced $1.34 million of contingent income issuer callable yield notes due Nov. 3, 2022 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 9% if each underlying index closes at or above its 70% coupon barrier on the observation date for that period.
The notes are callable at par quarterly at the option of the issuer.
The payout at maturity will be par unless any index finishes below its 70% threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
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 indexes: | Russell 2000 index, S&P 500 index, Nasdaq-100 index
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| Amount: | $1,336,000
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| Maturity: | Nov. 3, 2022
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| Coupon: | 9% annualized, payable monthly if each index closes at or above its coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index from initial level
|
| Call option: | At par plus any coupon on any quarterly call date
|
| Initial levels: | 4,181.17 for S&P, 2,266.449 for Russell, 13,860.76 for Nasdaq
|
| Coupon barrier levels: | 2,926.82 for S&P, 1,586.514 for Russell, 9,702.53 for Nasdaq; 70% of initial levels
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| Downside threshold levels: | 2,926.82 for S&P, 1,586.514 for Russell, 9,702.53 for Nasdaq; 70% of initial levels
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| Pricing date: | April 30, 2021
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| Settlement date: | May 5, 2021
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 0.575%
|
| Cusip: | 09709UHK7
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