Published on 6/1/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.23 million contingent income autocallable yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, June 1 – BofA Finance LLC priced $1.23 million of contingent income autocallable yield notes due May 27, 2027 linked to the worst performing of the Russell 2000 index, the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 5.4% if each underlying index closes at or above its 65% coupon barrier on the relevant observation date.
The notes will be called at par plus coupon if each index closes above its initial level on any quarterly determination date after one year.
The payout at maturity will be par plus the final coupon, if any, if each index finishes at or above its 50% threshold level. Otherwise, investors will be fully exposed to the decline of the worst performing index.
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.
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| Issue: | Contingent income autocallable yield notes
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Dow Jones industrial average
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| Amount: | $1,225,000
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| Maturity: | May 27, 2027
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| Coupon: | 5.4% annualized, payable quarterly if each index closes at or above its coupon barrier on the corresponding observation date
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par plus final coupon, if any; otherwise, 1% loss for each 1% decline of worst performing index from its initial level
|
| Call: | At par plus coupon if each index closes above its initial level on any quarterly determination date after one year
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| Initial levels: | 3,941.48 for S&P, 1,764.826 for Russell, 31,928.62 for Dow
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| Coupon barriers: | 2,561.96 for S&P, 1,147.137 for Russell, 20,753.6 for Dow; 65% of initial levels
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| Downside thresholds: | 1,970.74 for S&P, 882.413 for Russell, 15,964.31 for Dow; 50% of initial levels
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| Pricing date: | May 24
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| Settlement date: | May 27
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 4%
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| Cusip: | 09709UX60
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