Published on 10/22/2022 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.1 million contingent income buffered callable notes on S&P, Russell
By Kiku Steinfeld
Chicago, Oct. 24 – BofA Finance LLC priced $1.1 million of contingent income buffered issuer callable yield notes due Feb. 26, 2027 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon at an annual rate of 6.75% if each underlying closes at or above its 85% downside threshold on the related determination date.
The notes are callable at par on any quarterly contingent payment date after one year.
If the least performing underlier’s final level is greater than or equal to its 85% downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the least performing underlier declines beyond 15%.
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 buffered issuer callable yield notes
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| Underlying assets: | S&P 500 index, Russell 2000 index
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| Amount: | $1,098,000
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| Maturity: | Feb. 26, 2027
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| Coupon: | 6.75% per year, payable monthly if indexes close at or above downside threshold levels on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If least performing underlier’s final level is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that least performing underlier declines beyond 15%
|
| Call option: | At par at issuer’s option on any quarterly contingent payment date after one year
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| Initial levels: | 1,944.092 for Russell, 4,225.50 for S&P
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| Coupon barrier levels: | 1,652.478 for Russell, 3,591.68 for S&P; 85% of initial values
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| Downside threshold levels: | 1,652.478 for Russell, 3,591.68 for S&P; 85% of initial values
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| Pricing date: | Feb. 23, 2022
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| Settlement date: | Feb. 28, 2022
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| Agent: | BofA Securities, Inc.
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| Fees: | 3.75%
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| Cusip: | 09709UA81
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