Published on 10/27/2020 in the Prospect News Structured Products Daily.
New Issue: BofA sells $3.38 million contingent income issuer callable yield notes on indexes
By Kiku Steinfeld
Chicago, Oct. 27 – BofA Finance LLC priced $3.38 million of contingent income issuer callable yield notes due Oct. 25, 2022 linked to the worst performing of the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 12% if each underlying index closes at or above its 70% coupon barrier on the observation date for that period.
The notes are callable at par on any quarterly determination date.
The payout at maturity will be par unless any index finishes below its 70% threshold level, in which case investors will be fully exposed to any 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 assets: | Dow Jones industrial average, Russell 2000 and Nasdaq-100
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Amount: | $3,376,000
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Maturity: | Oct. 25, 2022
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Coupon: | 12% annualized, payable quarterly if each index closes at or above its coupon barrier on observation date for that period
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Price: | Par
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Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
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Call option: | At par on any quarterly determination date
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Initial levels: | 28,308.79 for Dow, 1,617.706 for Russell and 11,677.84 for Nasdaq
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Coupon barriers: | 19,816.15 for Dow, 1,132.394 for Russell and 8,174.49 for Nasdaq, 70% of initial levels
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Downside thresholds: | 19,816.15 for Dow, 1,132.394 for Russell and 8,174.49 for Nasdaq, 70% of initial levels
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Pricing date: | Oct. 20
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Settlement date: | Oct. 23
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Selling agent: | BofA Securities, Inc.
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Fees: | 0.75%
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Cusip: | 09709TZ20
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