Published on 5/12/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $8.53 million callable contingent market-linked notes with downside on indexes
By William Gullotti
Buffalo, N.Y., May 12 – BofA Finance LLC priced $8.53 million of market-linked securities – callable with contingent coupon with daily observation and contingent downside due Oct. 29, 2025 linked to the performance of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.5% if each index closes at or above its 70% coupon threshold on every trading day during the observation period.
The notes may be redeemed early at par plus any coupon otherwise due on any quarterly determination date.
The payout at maturity will be par plus any final coupon otherwise due if each index finishes at or above its coupon threshold.
If the worst performer finishes below its coupon threshold but at or above its 60% downside threshold, the payout will be par. Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
The notes are guaranteed by Bank of America Corp.
Wells Fargo Securities, LLC 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: | Market linked securities – callable with contingent coupon with daily observation and contingent downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Nasdaq-100 index
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| Amount: | $8.53 million
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| Maturity: | Oct. 29, 2025
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| Coupon: | 10.5% annualized, payable quarterly if each index closes at or above coupon threshold on every trading day during the observation period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above its downside threshold, par; otherwise, 1% loss per 1% decline of worst performer from its initial level
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| Call option: | At par plus any coupon otherwise due on any quarterly determination date
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| Initial levels: | 4,169.48 for S&P, 1,768.987 for Russell, 13,245.99 for Nasdaq
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| Coupon thresholds: | 2,918.636 for S&P, 1,238.2909 for Russell, 9,272.193 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 2,501.688 for S&P, 1,061.3922 for Russell, 7,947.594 for Nasdaq; 60% of initial levels
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| Pricing date: | April 28
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| Settlement date: | May 3
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| Agents: | Wells Fargo Securities, LLC and BofA Securities, Inc.
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| Fees: | 1.575%
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| Cusip: | 09709VPG5
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