Published on 5/3/2022 in the Prospect News Structured Products Daily.
New Issue: BofA prices $7.17 million autocallable market-linked step-up notes on index basket
By Wendy Van Sickle
Columbus, Ohio, May 3 – BofA Finance LLC priced $7.17 million of 0% autocallable market-linked step-up notes due April 25, 2025 tied to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the S&P 500 index (40% weight), the Russell 2000 index (40% weight), the Euro Stoxx 50 index (8% weight), the FTSE 100 Index (4% weight), the Nikkei Stock Average Index (4% weight), the Swiss Market Index (1.5% weight), the S&P/ASX 200 Index (1.5% weight) and the FTSE China 50 Index (1% weight).
The notes will be called at par plus an 12.5% annualized call premium if the basket closes at or above its initial level on any annual observation date.
If the basket finishes above the step-up value, 130% of the initial value, the payout at maturity will be par plus the basket return.
If the basket finishes flat or increases up to the step-up value, the payout will be par plus the step-up payment of 30%.
Investors will be exposed to any decline of the basket from its initial level.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Autocallable market-linked step-up notes
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| Underlying indexes: | S&P 500 index (40% weight), Russell 2000 index (40% weight), Euro Stoxx 50 index (8% weight), FTSE 100 Index (4% weight), Nikkei Stock Average Index (4% weight), Swiss Market Index (1.5% weight), S&P/ASX 200 Index (1.5% weight) and the FTSE China 50 Index (1% weight)
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| Amount: | $7,169,500
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| Maturity: | April 25, 2025
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If basket finishes above step-up value, par plus basket return; if basket finishes flat or increases up to step-up value, par plus 30%; full exposure to any decline
|
| Call: | Automatically at par plus 12.5% call premium per year if the basket closes at or above its initial level on any annual observation date
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| Initial levels: | 4,287.5 for S&P, 1,917.944 for Russell, 3,777.02 for Stoxx, 7,509.19 for FTSE, 26,847.9 for Nikkei, 12,068.41 for Swiss, 7,356.886 for S&P/ASX, 13,588.84 for FTSE China 50
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| Step-up value: | 130% of initial value
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| Pricing date: | April 28
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| Settlement date: | May 5
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| Agent: | BofA Securities, Inc.
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| Fees: | 2%
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| Cusip: | 09710F538
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