Published on 3/1/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $5.4 million contingent income issuer callable yield notes on indexes, ETF
By William Gullotti
Buffalo, N.Y., March 1 – BofA Finance LLC priced $5.4 million of contingent income issuer callable yield notes due Feb. 27, 2025 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the SPDR S&P Regional Banking 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 10% if each underlier closes at or above its 70% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon due on any monthly determination date after six months.
If the notes are not called and each underlier finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below the coupon barrier but at or above its 60% downside threshold level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worst performer 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, SPDR S&P Regional Banking ETF
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| Amount: | $5,403,000
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| Maturity: | Feb. 27, 2025
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| Coupon: | 10% annualized rate, payable monthly if each underlier 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 the final level of each underlier is greater than or equal to coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, investors will lose 1% for every 1% decline of the worst performer from its 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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| Initial levels: | $61.67 for ETF, 12,180.14 for Nasdaq, 1,908.093 for Russell
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| Coupon barriers: | $43.17 for ETF, 8,526.1 for Nasdaq, 1,335.665 for Russell; 70% of initial levels
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| Downside thresholds: | $37.00 for ETF, 7,308.08 for Nasdaq, 1,144.856 for Russell; 60% of initial levels
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| Pricing date: | Feb. 23
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| Settlement date: | Feb. 28
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 2.55%
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| Cusip: | 09709VGJ9
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