Published on 10/22/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $500,000 contingent income autocallable yield notes on three indexes
By Kiku Steinfeld
Chicago, Oct. 24 – BofA Finance LLC priced $500,000 of contingent income autocallable yield notes due Feb. 27, 2025 linked to the worst 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 7% if each underlying index closes at or above its 70% 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 six months.
The payout at maturity will be par plus the final coupon if each index finishes at or above its 70% 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
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income autocallable yield notes
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index, Dow Jones industrial average
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| Amount: | $500,000
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| Maturity: | Feb. 27, 2025
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| Coupon: | 7% annualized, payable monthly if each index closes at or above its coupon barrier on the corresponding observation date
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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 its initial level
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| Call: | At par plus coupon if each index closes above its initial level on any quarterly determination date after six months
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| Initial levels: | 13,509.43 for Nasdaq, 1,944.092 for Russell, 33,131.76 for Dow
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| Coupon barriers: | 9,456.60 for Nasdaq, 1,360.864 for Russell, 23,192.23 for Dow; 70% of initial levels
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| Downside thresholds: | 9,456.60 for Nasdaq, 1,360.864 for Russell, 23,192.23 for Dow; 70% of initial levels
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| Pricing date: | Feb. 23, 2022
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| Settlement date: | Feb. 28, 2022
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 2.85%
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| Cusip: | 09709UB23
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