Published on 3/5/2024 in the Prospect News Structured Products Daily.
New Issue: BofA sells $26.88 million capped notes with absolute return buffer on index basket
By William Gullotti
Buffalo, N.Y., March 5 – BofA Finance LLC priced $26.88 million of 0% capped notes with absolute return buffer due Feb. 27, 2026 linked to a weighted index basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the FTSE China 50 index with a 5% weight.
The notes are guaranteed by Bank of America Corp.
The payout at maturity will be par of $10 plus 1.25 times any basket gain, capped at par plus 35%.
If the basket finishes flat or falls by up to 12.6%, investors will receive par plus the absolute value of the return.
Investors will be exposed to basket decline beyond 12.6%.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Capped notes with absolute return buffer
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| Underlying indexes: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight), FTSE China 50 index (5% weight)
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| Amount: | $26,878,080
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| Maturity: | Feb. 27, 2026
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Par plus 1.25 times any basket gain, capped at par plus 35%; if basket falls by up to 12.6%, par plus absolute value of return; otherwise, 1% loss for every 1% of basket decline beyond 12.6%
|
| Initial index levels: | 4,877.77 for Stoxx, 7,630.02 for FTSE, 39,166.19 for Nikkei, 11,438.86 for Swiss Market, 7,698.699 for S&P/ASX, 10,883.74 for FTSE China
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| Threshold level: | 87.4% of initial level
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| Pricing date: | Feb. 29
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| Settlement date: | March 7
|
| Agent: | BofA Securities, Inc.
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| Fees: | 2%
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| Cusip: | 09710N382
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