Published on 7/6/2022 in the Prospect News Structured Products Daily.
New Issue: BofA prices $2.99 million contingent income callable yield notes on Nasdaq, Russell, Dow
By Wendy Van Sickle
Columbus, Ohio, July 6 – BofA Finance LLC priced $2.99 million of contingent income issuer callable yield notes due April 2, 2027 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 11% if each index closes at or above its coupon barrier, 75% of its initial level, on the observation date for that period.
The notes will be callable at par plus any contingent coupon on any quarterly call observation date after six months.
The payout at maturity will be par unless any index finishes below its 60% threshold level, in which case investors will be fully exposed to the losses 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 issuer callable yield notes
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and Dow Jones industrial average
|
| Amount: | $2,985,000
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| Maturity: | April 2, 2027
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| Coupon: | 11% annual rate, payable monthly if each index closes at or above coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise 1% loss for each 1% decline of worst performing index
|
| Call option: | At par on any quarterly call observation date after six months
|
| Initial levels: | 30,775.43 for Dow, 1,707.99 for Russell, 11,503.72 for Nasdaq
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| Coupon barriers: | 23,081.57 for Dow, 1,280.993 for Russell, 8,627.79 for Nasdaq, 75% of initial levels
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| Downside thresholds: | 18,465.26 for Dow, 1,024.794 for Russell, 6,902.23 for Nasdaq, 60% of initial levels
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| Pricing date: | June 30
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| Settlement date: | July 6
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| Selling agent: | BofA Securities, Inc.
|
| Fees: | 0.9%
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| Cusip: | 09709U2B3
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