Published on 9/2/2021 in the Prospect News Structured Products Daily.
New Issue: BofA sells $7.32 million contingent income autocallable yield notes on three SPDR ETFs
By Wendy Van Sickle
Columbus, Ohio, Sept. 2 – BofA Finance LLC priced $7.32 million of contingent income autocallable yield notes due Sept. 1, 2023 linked to the worst performing of the SPDR S&P Biotech ETF, the SPDR S&P Regional Banking ETF and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 13.5% if each underlying ETF closes at or above its 75% coupon barrier on the relevant observation date.
The notes will be called at par plus coupon if each ETF closes above its initial level on any quarterly determination date.
The payout at maturity will be par unless any ETF finishes below its 75% threshold level, in which case investors will be fully exposed to any losses of the worst performing ETF.
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 autocallable yield notes
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| Underlying assets: | SPDR S&P Biotech ETF, SPDR S&P Regional Banking ETF, Technology Select Sector SPDR Fund
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| Amount: | $7,315,000
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| Maturity: | Sept. 1, 2023
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| Coupon: | 13.5% annualized, payable quarterly if each ETF closes at or above its coupon barrier on corresponding observation date
|
| Price: | Par
|
| Payout at maturity: | If each ETF finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing ETF from its initial level
|
| Call: | At par plus coupon if each ETF closes above its initial level on any quarterly determination date
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| Initial levels: | $132.03 for Biotech, $158.00 for Technology, $66.89 for Banking
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| Coupon barriers: | $99.02 for Biotech, $118.50 for Technology, $50.17 for Banking; 75% of initial levels
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| Downside thresholds: | $99.02 for Biotech, $118.50 for Technology, $50.17 for Banking; 75% of initial levels
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| Pricing date: | Aug. 27
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| Settlement date: | Sept. 2
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| Selling agent: | BofA Securities, Inc.
|
| Fees: | 1.75%
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| Cusip: | 09709UQJ0
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