Published on 12/12/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $2 million contingent income buffered callable yield notes on indexes
New York, Dec. 12 – BofA Finance LLC priced $2 million of contingent income buffered issuer callable yield notes due Oct. 29, 2026 linked to the worst performing of the Dow Jones Industrial Average, 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 10% if each underlying index closes at or above its 75% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon on any monthly determination date after six months.
The payout at maturity will be par plus the final coupon if each index finishes at or above its 70% threshold level. Otherwise, investors will lose 1.42857% for each 1% decline of the worst performer beyond 30%.
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: | Dow Jones Industrial Average, Russell 2000 index, S&P 500 index
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| Amount: | $2 million
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| Maturity: | Oct. 29, 2026
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| Coupon: | 10% annualized rate, payable monthly if each index 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 each index finishes at or above threshold value, par plus final coupon; otherwise, 1.42857% loss for each 1% decline of worst performing index beyond 30%
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| Call option: | At par on any monthly determination date starting on April 30, 2024
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| Initial levels: | 33,035.93 for Dow, 1,651.428 for Russell, 4,186.77 for S&P
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| Coupon barrier levels: | 24,776.95 for Dow, 1,238.570 for Russell, 3,140.08 for S&P, 75% of initial levels
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| Threshold values: | 23,125.15 for Dow, 1,156.000 for Russell, 2,930.74 for S&P, 70% of initial levels
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| Pricing date: | Oct. 25
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| Settlement date: | Oct. 30
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| Agent: | BofA Securities, Inc.
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| Fees: | 0.05%
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| Cusip: | 09711AYF9
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