Published on 4/24/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $940,000 contingent income buffered callable yield notes on Russell, S&P
Chicago, April 24 – BofA Finance LLC priced $940,000 of contingent income buffered issuer callable yield notes due May 28, 2027 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 monthly coupon at an annual rate of 8.25% if each underlying index closes at or above its 85% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon otherwise due on any monthly determination date after one year.
The payout at maturity will be par plus the final coupon if each index finishes at or above its 85% threshold level. Otherwise, investors will lose 1% for each 1% decline of the worst performer beyond 15%.
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 buffered issuer callable yield notes
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| Underlying indexes: | Russell 2000 index, S&P 500 index
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| Amount: | $940,000
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| Maturity: | May 28, 2027
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| Coupon: | 8.25% annualized rate, payable monthly if each index closes at or above its coupon barrier on observation date for that period
|
| Price: | Par
|
| 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 beyond 15%
|
| Call option: | At par plus any coupon due on any monthly determination date after one year
|
| Initial levels: | 1,799.164 for Russell, 3,978.73 for S&P
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| Coupon barriers: | 1,529.289 for Russell, 3,381.92 for S&P; 85% of initial levels
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| Downside thresholds: | 1,529.289 for Russell, 3,381.92 for S&P; 85% of initial levels
|
| Pricing date: | May 25, 2022
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| Settlement date: | May 31, 2022
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| Selling agent: | BofA Securities, Inc.
|
| Fees: | 3.75%
|
| Cusip: | 09709UT65
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