Published on 1/28/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $670,000 contingent market-linked autocalls on Nasdaq, Russell
By Kiku Steinfeld
Chicago, Jan. 28 – Bank of Montreal priced $670,000 of market-linked securities – autocallable with contingent coupon and contingent downside due Oct. 25, 2022 linked to the least performing 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 10% if each index closes at or above its 80% 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 its initial level on any monthly observation date after six months.
If the notes are not called and each index’s final level is greater than or equal to its threshold, the payout at maturity will be par. Otherwise, investors will be fully exposed to the 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 selling agents for distribution.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
|
| Underlying indexes: | Russell 2000 index, Nasdaq-100 index
|
| Amount: | $670,000
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| Maturity: | Oct. 25, 2022
|
| Coupon: | 10% annualized, payable monthly if each index closes at or above threshold on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above threshold, par; otherwise, 1% loss for every 1% decline of worst performer from 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
|
| Initial levels: | 2,024.037 for Russell, 14,846.46 for Nasdaq
|
| Downside thresholds: | 1,619.2296 for Russell, 11,877.168 for Nasdaq; 80% of initial levels
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| Pricing date: | Jan. 20
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| Settlement date: | Jan. 25
|
| Selling agents: | Wells Fargo Securities, LLC and BofA Securities, Inc. are the selling agents for distribution
|
| Fees: | 1%
|
| Cusip: | 09709UXS2
|
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