Published on 3/18/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.99 million contingent income issuer callable yield notes on three indexes
By William Gullotti
Buffalo, N.Y., March 18 – BofA Finance LLC priced $1.99 million of contingent income issuer callable yield notes due March 18, 2027 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 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 9.5% if each underlying index closes at or above its 60% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon otherwise due on any quarterly determination date after one year.
The payout at maturity will be par plus the final coupon if each index finishes at or above its coupon barrier.
If the worst performer finishes below its coupon barrier but not below its 60% threshold level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worst performing index from its initial level.
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 indexes: | Nasdaq-100 index, Russell 2000, S&P 500 index
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| Amount: | $1,985,000
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| Maturity: | March 18, 2027
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| Coupon: | 9.5% annualized rate, payable quarterly if each index closes at or above its coupon barrier on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above coupon barrier, par plus final coupon; if the worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index from initial level
|
| Call option: | At par plus any coupon due on any quarterly determination date after one year
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| Initial levels: | 13,458.56 for Nasdaq, 1,968.969 for Russell, 4,262.45 for S&P
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| Coupon barriers: | 9,420.99 for Nasdaq, 1,378.278 for Russell, 2,983.72 for S&P; 70% of initial levels
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| Downside thresholds: | 6,729.28 for Nasdaq, 984.485 for Russell, 2,131.23 for S&P; 50% of initial levels
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| Pricing date: | March 15
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| Settlement date: | March 18
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 0.65%
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| Cusip: | 09709UH68
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