Published on 3/24/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $9.38 million of trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, March 24 – BofA Finance LLC priced $9.38 million of trigger callable contingent yield notes with daily coupon observation due Dec. 24, 2026 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
The notes will pay a contingent quarterly coupon at an annual rate of 13.6% if each index closes at or above its coupon barrier, 70% of its initial level, on every day that quarter.
The notes may be called at the option of the issuer at par of $10 plus any contingent coupon due on any quarterly observation date.
The payout at maturity will be par plus any final coupon if each index finishes at or above the downside threshold level, 55% of its initial level. Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
UBS Financial Services Inc. and BofA Securities, Inc. are the agents.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $9,375,000
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| Maturity: | Dec. 24, 2026
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| Coupon: | 13.6% annual rate, payable quarterly if each index closes at or above coupon barrier on every day that quarter
|
| Price: | Par of $10
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| Payout at maturity: | Par plus the final coupon if any if worst performer finishes at or above downside threshold; otherwise, 1% loss for each 1% decline of worst performing index from initial level
|
| Call: | At par plus any coupon due on any quarterly observation date
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| Initial index levels: | 4,002.87 for S&P, 1,777.74 for Russell, 4,181.6 for Euro Stoxx 50
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| Coupon barrier levels: | 2,802.01 for S&P, 1,2244.418 for Russell, 2,927.12 for Euro Stoxx 50; 70% of initial levels
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| Downside thresholds: | 2,201.58, for S&P, 977.757 for Russell, 2,299.88 for Euro Stoxx 50; 55% of initial levels
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| Pricing date: | March 21
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| Settlement date: | March 24
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| Agents: | UBS Financial Services Inc. and BofA Securities, Inc.
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| Fees: | 1%
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| Cusip: | 09710K412
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