Published on 4/6/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.2 million contingent income callable yield notes on two ETFs
By Kiku Steinfeld
Chicago, April 6 – BofA Finance LLC priced $1.2 million of contingent income issuer callable yield notes due Sept. 27, 2024 linked to the worst performing of the SPDR S&P Regional Banking ETF and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.5% if each underlying asset closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes are callable at par quarterly from March 29, 2022 to June 27, 2024.
The payout at maturity will be par unless any asset finishes below its 70% 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: | SPDR S&P Regional Banking ETF and Financial Select Sector SPDR fund
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| Amount: | $1.2 million
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| Maturity: | Sept. 27, 2024
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| Coupon: | 9.5% annualized, payable quarterly if each asset closes at or above its 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; otherwise, 1% loss for each 1% decline of worst performing asset
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| Call option: | At par quarterly from March 29, 2022 to June 27, 2024
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| Initial levels: | $38.22 for Financial, $65.91 for Banking
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| Coupon barriers: | $26.75 for Financial, $46.14 for Banking, 70% of initial levels
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| Downside thresholds: | $26.75 for Financial, $46.14 for Banking, 70% of initial levels
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| Pricing date: | Sept. 24, 2021
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| Settlement date: | Sept. 29, 2021
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 1.5%
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| Cusip: | 09709USF6
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