Published on 2/16/2021 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1 million contingent income callable yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 16 – BofA Finance LLC priced $1 million of contingent income issuer callable yield notes due Feb. 4, 2026 linked to the least performing of the Nasdaq-100 index, the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.1% if each index closes at or above its coupon barrier, 65% of its initial level, on the observation date for that quarter.
The notes are callable at par plus any contingent coupon on any observation date after six months other than the final one.
The payout at maturity will be par the final coupon due unless any index finishes below its 65% threshold level, in which case investors will be fully exposed to the 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
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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 indexes: | Nasdaq-100 index, S&P 500 index and Dow Jones industrial average
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Amount: | $1 million
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Maturity: | Feb. 4, 2026
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Coupon: | 8.1% annual rate, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | If each index finishes at or above downside threshold, par plus final coupon; otherwise 1% loss for each 1% decline of worst performing index
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Call option: | At par plus any coupon on any observation date after six months other than final one
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Initial levels: | 3,773.86 for S&P, 13,248.9 for Nasdaq, 30,211.91 for Dow
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Coupon barriers: | 2,453.01 for S&P, 8,611.79 for Nasdaq, 19,637.74 for Dow, 65% of initial levels
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Downside thresholds: | 2,453.01 for S&P, 8,611.79 for Nasdaq, 19,637.74 for Dow, 65% of initial levels
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Pricing date: | Feb.1
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Settlement date: | Feb. 4
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Selling agent: | BofA Securities, Inc.
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Fees: | 1%
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Cusip: | 09709UAS7
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