Published on 9/20/2021 in the Prospect News Structured Products Daily.
New Issue: BofA sells $876,000 market-linked autocalls with contingent downside on two indexes
By William Gullotti
Buffalo, N.Y., Sept. 20 – BofA Finance LLC priced $876,000 of market-linked securities – autocallable with contingent coupon and contingent downside due June 29, 2022 linked to the performance of 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 monthly coupon at an annual rate of 7.25% if each index closes at or above its 75% coupon threshold on the observation date for that period.
The notes will be called at par plus the coupon if each index closes at or above the initial level on any monthly observation date after six months.
The payout at maturity will be par plus the final coupon unless any index finishes below its 75% downside threshold, in which case investors will lose 1% for every 1% decline of the worst performer from its initial level.
The notes are guaranteed by Bank of America Corp.
Wells Fargo Securities, LLC and BofA Securities, Inc. are the agents.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index
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| Amount: | $876,000
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| Maturity: | June 29, 2022
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| Coupon: | 7.25% annualized, payable monthly if each index closes at or above coupon threshold on observation date for that period
|
| Price: | Par
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| Payout at maturity: | Par plus the final coupon unless any index falls by more than 25%, in which case 1% loss per 1% decline of worst performer from its initial level
|
| Call: | At par plus coupon if each index closes at or above its initial level on any monthly observation date after six months
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| Initial levels: | 2,308.837 for Russell, 14,572.75 for Nasdaq
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| Coupon thresholds: | 1,731.62775 for Russell, 10,929.5625 for Nasdaq; 75% of initial levels
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| Downside thresholds: | 1,731.62775 for Russell, 10,929.5625 for Nasdaq; 75% of initial levels
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| Pricing date: | June 29
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| Settlement date: | July 2
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| Agents: | Wells Fargo Securities, LLC and BofA Securities, Inc.
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| Fees: | 1.275%
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| Cusip: | 09709ULU0
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