Published on 4/18/2022 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.07 million contingent income buffered callable yield notes on two indexes
By Kiku Steinfeld
Chicago, April 18 – BofA Finance LLC priced $1.07 million of contingent income buffered issuer callable yield notes due Oct. 1, 2026 linked to the least performing of the Russell 2000 index and the S&P 500 index, according to a 074B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 4.25% if each index closes at or above its coupon barrier, 85% of its initial level, on the observation date for that period.
The notes are callable at par plus any contingent coupon on any quarterly call observation date after one year.
The payout at maturity will be par plus the coupon unless any index finishes below its 85% threshold level, in which case investors will lose 1% for every 1% that the worst performing index decline beyond the 15% buffer.
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.
|
| Issue: | Contingent income buffer issuer callable yield notes
|
| Underlying indexes: | Russell 2000 index, S&P 500 index
|
| Amount: | $1,065,000
|
| Maturity: | Oct. 1, 2026
|
| Coupon: | 4.25% annual rate, payable monthly 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 buffer level, par plus coupon; otherwise, 1% loss for each 1% decline of worst performing index beyond buffer
|
| Call option: | At par plus any coupon on any quarterly call observation date after one year
|
| Initial levels: | 2,281.003 for Russell, 4,443.11 for S&P
|
| Coupon barrier levels: | 1,938.853 for Russell, 3,776.64 for S&P; 85% of initial levels
|
| Buffer levels: | 1,938.853 for Russell, 3,776.64 for S&P; 85% of initial levels
|
| Pricing date: | Sept. 27, 2021
|
| Settlement date: | Sept. 30, 2021
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 3.75%
|
| Cusip: | 09709UQW1
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
