Published on 2/23/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $5.1 million contingent income issuer callable yield notes on S&P, Russell
By William Gullotti
Buffalo, N.Y., Feb. 23 – BofA Finance LLC priced $5.1 million of contingent income issuer callable yield notes due Feb. 23, 2028 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 semiannual coupon at an annual rate of 8.4% 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 semiannual determination date.
The payout at maturity will be par plus the final coupon if each index finishes at or above its 55% threshold level. Otherwise, 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: | $5,099,000
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Maturity: | Feb. 23, 2028
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Coupon: | 8.4% annualized rate, payable semiannually 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 semiannual determination date
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Initial levels: | 1,946.356 for Russell, 4,079.09 for S&P
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Coupon barriers: | 1,070.496 for Russell, 2,243.5 for S&P; 55% of initial levels
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Downside thresholds: | 1,070.496 for Russell, 2,243.5 for S&P; 55% of initial levels
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Pricing date: | Feb. 17
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Settlement date: | Feb. 23
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Selling agent: | BofA Securities, Inc.
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Fees: | None
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Cusip: | 09709VFU5
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