Published on 10/26/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $6.11 million contingent income buffered issuer callable yield notes on indexes
By William Gullotti
Buffalo, N.Y., Oct. 26 – BofA Finance LLC priced $6.11 million of contingent income buffered issuer callable yield notes due March 19, 2026 linked to the worst performing of the Euro Stoxx 50 index, 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 12.75% if each underlying index closes at or above its 75% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon otherwise due on any quarterly determination date.
The payout at maturity will be par plus the final coupon if each index finishes at or above its coupon barrier.
If the worst performer finishes below its coupon barrier but not below its 70% buffer level, the payout will be par. Otherwise, investors will lose 1.42857% for every 1% decline of the worst performer below 30%.
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 indexes: | Euro Stoxx 50 index, Russell 2000, S&P 500 index
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| Amount: | $6.11 million
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| Maturity: | March 19, 2026
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| Coupon: | 12.75% annualized rate, payable monthly if each index closes at or above its coupon barrier on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above coupon barrier level, par plus final coupon; if worst performing index finishes below coupon barrier but at or above buffer level, par; otherwise, 1.42857% loss for each 1% decline of worst performing index below 30%
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| Call option: | At par plus any coupon due on any quarterly determination date
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| Initial levels: | 3,500.41 for Stoxx, 1,798.189 for Russell, 3,873.33 for S&P
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| Coupon barriers: | 2,625.31 for Stoxx, 1,348.642 for Russell, 2,905.0 for S&P; 75% of initial levels
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| Buffer levels: | 2,450.29 for Stoxx, 1,258.732 for Russell, 2,711.33 for S&P; 70% of initial levels
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| Pricing date: | Sept. 16
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| Settlement date: | Sept. 21
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 0.25%
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| Cusip: | 09709V3H7
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