Published on 11/14/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $750,000 contingent income issuer callable yield notes on Russell, S&P
By Kiku Steinfeld
Chicago, Nov. 14 – BofA Finance LLC priced $750,000 of contingent income issuer callable yield notes due March 18, 2027 linked to the worst performing of 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 quarterly coupon at an annual rate of 6% if each underlying index closes at or above its 55% 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 after six months.
The payout at maturity will be par plus the final coupon unless any index finishes below its 55% threshold level, in which case investors will be fully exposed to the decline of the worst performing index from its initial level.
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 issuer callable yield notes
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| Underlying indexes: | Russell 2000 index, S&P 500 index
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| Amount: | $750,000
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| Maturity: | March 18, 2027
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| Coupon: | 6% annualized rate, payable quarterly 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 downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index from initial level
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| Call option: | At par plus any coupon due on any quarterly determination date after six months
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| Initial levels: | 1,968.969 for Russell, 4,262.45 for S&P
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| Coupon barriers: | 1,082.933 for Russell, 2,344.35 for S&P; 55% of initial levels
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| Downside thresholds: | 1,082.933 for Russell, 2,344.35 for S&P; 55% of initial levels
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| Pricing date: | March 15, 2022
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| Settlement date: | March 18, 2022
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 2.35%
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| Cusip: | 09709UH84
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