Published on 7/27/2021 in the Prospect News Structured Products Daily.
New Issue: BofA prices $15.07 million contingent income autocallable yield notes on stock basket
By Wendy Van Sickle
Columbus, Ohio, July 27 – BofA Finance LLC priced $15.07 million of contingent income autocallable yield notes due April 24, 2024 linked an equally weighted basket of the common stocks of Tesla, Inc., Trade Desk Inc., Pinterest, Inc. and Square, Inc., 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 the basket closes at or above its coupon barrier, 70% of its initial level, on the observation date for that month.
After six months, the notes will be called at par plus any contingent coupon if the basket closes above its initial level on any observation date other than the final one.
The payout at maturity will be par the final coupon due unless the basket finishes below its 60% threshold level, in which case investors will be fully exposed to the losses.
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 autocallable yield notes
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Underlying basket: | Tesla, Inc., Trade Desk Inc., Pinterest, Inc. and Square, Inc., equal weights
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Amount: | $15.07 million
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Maturity: | April 24, 2024
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Coupon: | 10% annual rate, payable monthly if the basket closes at or above coupon barrier on observation date for that month
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Price: | Par
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Payout at maturity: | If basket finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline
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Call: | After six months at par plus any coupon if basket closes above its initial level on any observation date other than final one
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Initial level: | $646.22 for Tesla, $70.94 for Trade Desk, $71.36 for Pinterest, $233.69 for Square
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Coupon barrier: | 70% of initial level
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Downside threshold: | 60% of initial level
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Pricing date: | July 19
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Settlement date: | July 22
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Selling agent: | BofA Securities, Inc.
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Fees: | 3.1%
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Cusip: | 09709UMJ4
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