Published on 7/1/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $2.42 million contingent income buffered issuer callable yield notes on indexes
By William Gullotti
Buffalo, N.Y., July 1 – BofA Finance LLC priced $2.42 million of contingent income buffered issuer callable yield notes due July 1, 2027 linked to the worst performing of 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 monthly coupon at an annual rate of 8.5% if each underlying index closes at or above its 85% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon otherwise due on any monthly determination date after one year.
The payout at maturity will be par plus the final coupon unless any index finishes below its 85% threshold level, in which case investors will lose 1% for every 1% decline of the worst performer below 15%.
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 buffered issuer callable yield notes
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| Underlying indexes: | Russell 2000 index, S&P 500 index
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| Amount: | $2,418,000
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| Maturity: | July 1, 2027
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| Coupon: | 8.5% annualized rate, payable monthly if each index closes at or above its coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above buffer level, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index below 15%
|
| Call option: | At par plus any coupon due on any monthly determination date after one year
|
| Initial levels: | 1,771.742 for Russell, 3,900.11 for S&P
|
| Coupon barriers: | 1,505.981 for Russell, 3,315.09 for S&P; 85% of initial levels
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| Buffer levels: | 1,505.981 for Russell, 3,315.09 for S&P; 85% of initial levels
|
| Pricing date: | June 27
|
| Settlement date: | June 30
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 3.75%
|
| Cusip: | 09709UZ76
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