Published on 12/3/2020 in the Prospect News Structured Products Daily.
New Issue: BofA prices $5.23 million contingent income callable yield notes on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, Dec. 3 – BofA Finance LLC priced $5.23 million of contingent income issuer callable yield notes due Nov. 30, 2022 linked to the least performing of the Euro Stoxx 50 index, the Russell 2000 index and the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.55% if each asset 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 other than the final one.
The payout at maturity will be par the final coupon due unless any asset finishes below its 65% threshold level, in which case investors will be fully exposed to the losses of the worst performing asset.
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 assets: | Euro Stoxx 50 index, Russell 2000 index and SPDR S&P Regional Banking ETF
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Amount: | $5,232,000
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Maturity: | Nov. 30, 2022
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Coupon: | 9.55% annual rate, payable quarterly if each asset 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 asset finishes at or above downside threshold, par plus final coupon; otherwise 1% loss for each 1% decline of worst performing asset
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Call option: | At par plus any coupon on any observation date other than final one
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Initial levels: | $50.93 for ETF, 3,507.98 for Stoxx 1,853.532 for Russell
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Coupon barriers: | $33.10 for ETF, 2,280.19 for Stoxx, 1,204.796 for Russell, 65% of initial levels
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Downside thresholds: | $33.10 for ETF, 2,280.19 for Stoxx, 1,204.796 for Russell, 65% of initial levels
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Pricing date: | Nov. 24
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Settlement date: | Nov. 30
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Selling agent: | BofA Securities, Inc.
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Fees: | 1.75%
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Cusip: | 09709T2T7
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