Published on 9/23/2021 in the Prospect News Structured Products Daily.
New Issue: BofA sells $2.14 million contingent income autocalls on three stocks
By William Gullotti
Buffalo, N.Y., Sept. 23 – BofA Finance LLC priced $2.14 million of contingent income autocallable yield notes due Sept. 20, 2024 tied to the stocks of Dollar Tree, Inc., FedEx Corp. and Zillow Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 20.5% per year if each stock closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period.
The notes will be automatically called at par plus the coupon if each stock closes at or above its initial level on any monthly call determination date after six months.
If the notes are not called and each stock finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the lowest-performing stock finishes below its coupon barrier but at or above its downside threshold level, 60% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income autocallable yield notes
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| Underlying stocks: | Dollar Tree, Inc., FedEx Corp., Zillow Group, Inc.
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| Amount: | $2,135,000
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| Maturity: | Sept. 20, 2024
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| Coupon: | 20.5% per year, payable monthly if each stock closes at or above coupon barrier level on any observation date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above coupon barrier, par plus final coupon; if the worst performer finishes below coupon barrier but at or above its downside threshold, par; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
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| Call option: | At par plus coupon if each stock closes at or above its initial level on any monthly call determination date after six months
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| Initial levels: | $89.31 for Dollar Tree, $255.22 for FedEx, $96.03 for Zillow
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| Coupon barriers: | $62.52 for Dollar Tree, $178.65 for FedEx, $67.22 for Zillow; 70% of initial levels
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| Downside threshold levels: | $53.59 for Dollar Tree, $153.13 for FedEx, $57.62 for Zillow; 60% of initial levels
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| Pricing date: | Sept. 17
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| Settlement date: | Sept. 22
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| Agent: | BofA Securities, Inc.
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| Fees: | 0.75%
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| Cusip: | 09709UQU5
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