Published on 5/11/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.09 million contingent income issuer callable yield notes on three indexes
By William Gullotti
Buffalo, N.Y., May 11 – BofA Finance LLC priced $1.09 million of contingent income issuer callable yield notes due May 11, 2027 linked to the worst performing of the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9% if each underlying index closes at or above its 60% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon otherwise due on any quarterly determination date.
The payout at maturity will be par plus the final coupon unless any index finishes below its 60% threshold level, in which case investors will be fully exposed to the decline of the worst performing index from its initial level.
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 issuer callable yield notes
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Underlying indexes: | Dow Jones industrial average, Russell 2000 index, S&P 500 index
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Amount: | $1,085,000
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Maturity: | May 11, 2027
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Coupon: | 9% annualized rate, payable quarterly if each index closes at or above its coupon barrier on observation date for that period
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Price: | Par
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Payout at maturity: | If each index finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index from initial level
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Call option: | At par plus any coupon due on any quarterly determination date
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Initial levels: | 34,061.06 for Dow, 1,949.923 for Russell, 4,300.17 for S&P
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Coupon barriers: | 20,436.64 for Dow, 1,169.954 for Russell, 2,580.1 for S&P; 60% of initial levels
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Downside thresholds: | 20,436.64 for Dow, 1,169.954 for Russell, 2,580.1 for S&P; 60% of initial levels
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Strike date: | May 4
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Pricing date: | May 6
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Settlement date: | May 11
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Selling agent: | BofA Securities, Inc.
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Fees: | 0.25%
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Cusip: | 09709UW38
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