Published on 2/8/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $600,000 contingent income issuer callable yield notes on three indexes
By Kiku Steinfeld
Chicago, Feb. 8 – BofA Finance LLC $600,000 of contingent income issuer callable yield notes due Nov. 14, 2025 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.25%, paid monthly, if each underlying index closes at or above its 70% coupon barrier on the related monthly observation date.
The securities may be called starting Feb. 14, 2023 at par on any monthly call date.
At maturity the payout will be par unless the worst performing index closes below its 60% downside threshold in which case investors will be fully exposed to the decline of that 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 issuer callable yield notes
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| Underlying indexes: | Nasdaq-100 index, Russell 2000, S&P 500 index
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| Amount: | $600,000
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| Maturity: | Nov. 14, 2025
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| Coupon: | 10.25% 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 downside threshold, par; 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 monthly determination date after six months
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| Call: | Starting Feb. 14, 2023 at par on any monthly call date
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| Initial levels: | 10,797.55 for Nasdaq, 1,760.400 for Russell, 3,748.57 for S&P
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| Downside threshold: | 7,558.29 for Nasdaq, 1,232.280 for Russell, 2,624.00 for S&P, 60% of initial levels
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| Coupon barriers: | 6,478.53 for Nasdaq, 1,056.240 for Russell, 2,249.14 for S&P, 70% of initial levels
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| Pricing date: | Nov. 9, 2022
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| Settlement date: | Nov. 15, 2022
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| Agent: | BofA Securities, Inc.
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| Fees: | 3.25%
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| Cusip: | 09709VAN6
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