Published on 10/17/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $4.76 million callable contingent market-linked notes with downside on indexes
By William Gullotti
Buffalo, N.Y., Oct. 17 – BofA Finance LLC priced $4.76 million of market-linked securities – callable with contingent coupon and contingent downside due Sept. 29, 2027 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 9.16% if each index closes at or above its 70% coupon threshold on the relevant observation date.
After six months, the notes may be redeemed early at par plus any coupon otherwise due on any quarterly determination date.
If the notes are not redeemed and each index finishes at or above its coupon threshold, the payout will be par plus the final coupon.
If the worst performer declines but finishes at or above its 67% 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 and contingent downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Nasdaq-100 index
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| Amount: | $4,755,000
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| Maturity: | Sept. 29, 2027
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| Coupon: | 9.16% annualized, payable quarterly if each index closes at or above coupon threshold on the relevant observation date
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above its downside threshold, par plus final coupon; 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 after six months
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| Initial levels: | 4,288.05 for S&P, 1,785.102 for Russell, 14,715.24 for Nasdaq
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| Coupon thresholds: | 3,001.635 for S&P, 1,249.5714 for Russell, 10,300.668 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 2,872.9935 for S&P, 1,196.01834 for Russell, 9,859.2108 for Nasdaq; 67% of initial levels
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| Pricing date: | Sept. 29
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| Settlement date: | Oct. 4
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| Agents: | Wells Fargo Securities, LLC and BofA Securities, Inc.
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| Fees: | 2.325%
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| Cusip: | 09711AQT8
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