Published on 9/23/2021 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.4 million contingent income callable yield notes on indexes
By Kiku Steinfeld
Chicago, Sept. 23 – BofA Finance LLC priced $1.4 million of contingent income issuer callable yield notes due July 28, 2026 linked to the least performing of the Dow Jones industrial average, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 5.6% if each index closes at or above its coupon barrier, 60% of its initial level, on the observation date for that quarter.
The notes are callable at par plus any contingent coupon on any semiannual call observation date other than the final one.
The payout at maturity will be par unless any index finishes below its 60% 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: | Dow Jones industrial average, S&P 500 index and Russell 2000 index
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| Amount: | $1,395,000
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| Maturity: | July 28, 2026
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| Coupon: | 5.6% annual rate, payable semiannually if each index closes at or above coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise 1% loss for each 1% decline of worst performing index
|
| Call option: | Par plus any coupon on any semiannual call observation date other than final one
|
| Initial levels: | 4,411.79 for S&P, 35,061.55 Dow, 2,209.649 for Russell
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| Coupon barriers: | 2,647.07 for S&P, 21,036.93 for Dow, 1,325.789 for Russell, 60% of initial levels
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| Downside thresholds: | 2,647.07 for S&P, 21,036.93 for Dow, 1,325.789 for Russell, 60% of initial levels
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| Pricing date: | July 23
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| Settlement date: | July 28
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 0%
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| Cusip: | 09709UNH7
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