Published on 1/10/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $560,000 contingent income issuer callable yield notes on indexes, ETF
By Emma Trincal
New York, Jan. 10 – BofA Finance LLC priced $560,000 of contingent income issuer callable yield notes due Jan. 10, 2028 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the VanEck Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 11% if each underlying asset is greater than or equal to its 50% coupon barrier on that monthly observation date.
The notes are callable at par plus any coupon otherwise due on any monthly observation date starting on Jan. 10, 2024.
The payout at maturity will be par plus the final coupon unless any underlying asset finishes below its 50% threshold level, in which case investors will be fully exposed to the decline of the worst performing underlying asset 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 assets: | Nasdaq-100 index, Russell 2000 index and VanEck Gold Miners ETF
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| Amount: | $560,000
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| Maturity: | Jan. 10, 2028
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| Coupon: | 11% annualized rate, payable monthly if each underlying asset closes at or above its coupon barrier on a monthly observation date
|
| Price: | Par
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| Payout at maturity: | If each underlying asset finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing underlying asset from initial level
|
| Call option: | At par plus any coupon due on any monthly observation date after one year
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| Initial levels: | 10,741.22 for Nasdaq, 1,753.193 for Russell, 30.65 for Gold Miners
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| Coupon barriers: | 5,370.61 for Nasdaq, 876.597 for Russell, 15.33 for Gold Miners ETF; 50% of initial levels
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| Downside thresholds: | 5,370.61 for Nasdaq, 876.597 for Russell, 15.33 for Gold Miners ETF; 50% of initial levels
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| Pricing date: | Jan. 5
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| Settlement date: | Jan. 10
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 0.5%
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| Cusip: | 09709VDH6
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