Published on 11/1/2021 in the Prospect News Structured Products Daily.
New Issue: BofA sells $78,000 contingent income buffered autocalls on two ETFs
Chicago, Nov. 1 – BofA Finance LLC priced $78,000 of contingent income buffered autocallable yield notes due April 1, 2024 linked to the least performing of the Energy Select Sector SPDR fund and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
Each month, the notes will pay a contingent coupon at an annual rate of 8.5% if each fund closes at or above its coupon barrier, 80% of its initial share price, on the observation date for that period.
After one year, the notes will be called automatically at par if each ETF closes at or above its initial share price on any monthly contingent coupon payment date.
The payout at maturity will be par plus the coupon unless either ETF finishes below its 80% threshold value, in which case investors will lose 1% for each 1% decline beyond the 20% buffer of the lesser-performing ETF.
BofA Securities, Inc. is the selling agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Contingent income buffered autocallable yield notes
|
| Underlying ETFs: | Energy Select Sector SPDR fund and SPDR S&P Biotech ETF
|
| Amount: | $78,000
|
| Maturity: | April 1, 2024
|
| Coupon: | 8.5% annualized, payable monthly if each ETF closes at or above its coupon barrier on the observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each ETF finishes at or above its threshold value, par; otherwise, 1% loss for each 1% decline of the lesser-performing ETF beyond 20% buffer
|
| Call: | After one year, automatically at par if each ETF closes at or above its initial share price on any monthly contingent coupon payment date
|
| Initial share prices: | $50.43 for Energy, $133.06 for Biotech
|
| Coupon barriers: | $40.34 for Energy, $106.45 for Biotech, 80% of initial share prices
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| Threshold values: | $40.34 for Energy, $106.45 for Biotech, 80% of initial share prices
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 3%
|
| Cusip: | 09709UDU9
|
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