Published on 11/10/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.15 million contingent income callable yield notes on Russell, Dow
By Wendy Van Sickle
Columbus, Ohio, Nov. 10 – BofA Finance LLC priced $1.15 million of contingent income issuer callable yield notes due Sept. 28, 2025 linked to the worst performing of the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 97.5% if each underlying index closes at or above its 70% coupon barrier on the relevant observation date.
The notes will be callable at par plus coupon 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 coupon barrier.
Otherwise, investors will be fully exposed to any 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, Dow Jones industrial average
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| Amount: | $1,153,000
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| Maturity: | Sept. 28, 2025
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| Coupon: | 9.75% annualized, payable quarterly if each index closes at or above its coupon barrier on the corresponding observation date
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above coupon barrier, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index from its initial level
|
| Call option: | At par plus coupon on any quarterly determination date after six months
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| Initial levels: | 1,679.59 for Russell, 29,590.41 for Dow
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| Coupon barriers: | 1,175.713 for Russell, 20,713.29 for Dow; 70% of initial levels
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| Pricing date: | Sept. 23
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| Settlement date: | Sept. 28
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| Selling agent: | BofA Securities, Inc.
|
| Fees: | 1.5%
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| Cusip: | 09709V7L6
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