By Kiku Steinfeld
Chicago, Feb. 28 – BofA Finance LLC priced $1.78 million of contingent income issuer callable yield notes due Sept. 12, 2024 linked to the least performing of the Financial Select Sector SPDR fund 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 annualized rate of 7.5% if each fund closes at or above its coupon barrier, 70% of its initial level, on the observation date for that period.
The notes are callable at par plus the contingent coupon on any observation date after six months other than the final one.
The payout at maturity will be par unless any fund finishes below its 70% threshold level, in which case investors will be fully exposed to any losses of the worst performing fund.
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 funds: | Financial Select Sector SPDR fund and the SPDR S&P Regional Banking ETF
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Amount: | $1.78 million
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Maturity: | Sept. 12, 2024
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Coupon: | 7.5% annual rate, payable quarterly if each fund closes at or above coupon barrier on observation date for that period
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Price: | Par
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Payout at maturity: | If each fund finishes at or above downside threshold, par; otherwise 1% loss for each 1% decline of worst performing fund
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Call option: | At par plus coupon on any observation date after six months
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Initial levels: | $37.86 for Financial, $64.36 for Regional Banking
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Coupon barriers: | $26.50 for Financial, $45.05 for Regional Banking, 70% of initial levels
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Downside thresholds: | $26.50 for Financial, $45.05 for Regional Banking, 70% of initial levels
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Pricing date: | Sept. 9
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Settlement date: | Sept. 14
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Selling agent: | BofA Securities, Inc.
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Fees: | 1.5%
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Cusip: | 09709UQZ4
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