Published on 2/26/2021 in the Prospect News Structured Products Daily.
New Issue: BofA prices $750,000 contingent income callable yield notes on stocks
By Wendy Van Sickle
Columbus, Ohio, Feb. 26 – BofA Finance LLC priced $750,000 of contingent income issuer callable yield notes due Aug. 17, 2022 linked to the least performing of the shares of Amazon.com, Inc., Apple Inc., Alphabet Inc. and Netflix, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 16.5% if each stock closes at or above its coupon barrier, 65% 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 the final coupon due unless any stock finishes below its 55% 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 Netflix, Inc.
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| Amount: | $750,000
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| Maturity: | Aug. 17, 2022
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| Coupon: | 16.5% 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 plus final coupon; 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: | $3,277.71 for Amazon, $135.37 for Apple, $2,095.03 for Alphabet, $556.52 for Netflix
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| Coupon barriers: | $2,130.51 for Amazon, $87.99 for Apple, $1,361.77 for Alphabet, $361.74 for Netflix, 65% of initial levels
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| Downside thresholds: | $1,802.74 for Amazon, $74.45 for Apple, $1,152.27 for Alphabet, $306.09 for Netflix 55% of initial levels
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| Pricing date: | Feb.12
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| Settlement date: | Feb. 18
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 1%
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| Cusip: | 09709UCA4
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