By Kiku Steinfeld
Chicago, Feb. 23 – BofA Finance LLC priced $4.41 million of contingent income issuer callable yield notes due Feb. 22, 2023 linked to the shares of Southwest Airlines Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 13.35% if the stock closes at or above its coupon barrier, 70% of its initial level, on the observation date for that period.
The notes are callable at par plus the contingent coupon on any quarterly call observation date after six months.
The payout at maturity will be par plus the coupon unless any stock finishes below its 70% threshold level, in which case investors will be fully exposed to the losses of the stock.
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 issuer callable yield notes
|
| Underlying stock: | Southwest Airlines Co.
|
| Amount: | $4,406,000
|
| Maturity: | Feb. 22, 2023
|
| Coupon: | 13.35% annual rate, payable quarterly if stock closes at or above coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above downside threshold, par plus coupon; otherwise, 1% loss for each 1% decline of stock
|
| Call option: | Callable at par plus coupon on any quarterly call observation date after six months
|
| Initial level: | $51.96
|
| Coupon barrier: | $36.37, 70% of initial levels
|
| Downside threshold: | $36.37, 70% of initial levels
|
| Pricing date: | Feb. 16
|
| Settlement date: | Feb. 19
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 1.75%
|
| Cusip: | 09709UCN6
|
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