Published on 2/19/2021 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.49 million contingent income callable yield notes on Russell, Nasdaq, Dow
By Kiku Steinfeld
Chicago, Feb. 19 – BofA Finance LLC priced $1.49 million of contingent income issuer callable yield notes due Aug. 10, 2022 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 12.5% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that quarter.
The notes are callable at par plus any contingent coupon due on any observation date other than the final one.
The payout at maturity will be par plus any final coupon due unless any index finishes below its 65% threshold level, in which case investors will be fully exposed to the 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
|
| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable yield notes
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and Dow Jones industrial average
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| Amount: | $1,493,000
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| Maturity: | Aug. 10, 2022
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| Coupon: | 12.5% annual rate, payable quarterly if each index closes at or above coupon barrier on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par plus any final coupon; otherwise 1% loss for each 1% decline of worst performing index
|
| Call option: | At par plus any coupon on any observation date other than final one
|
| Initial levels: | 31,148.24 for Dow, 13,603.96 for Nasdaq, 2,233.327 for Russell
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| Coupon barriers: | 21,803.77 for Dow, 9,522.77 for Nasdaq, 1,563.329 for Russell, 70% of initial levels
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| Downside thresholds: | 20,246.36 for Dow, 8,842.57 for Nasdaq, 1,451.663 for Russell, 65% of initial levels
|
| Pricing date: | Feb. 5
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| Settlement date: | Feb. 10
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 0.6%
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| Cusip: | 09709UBR8
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