Published on 12/20/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $919,000 market-linked callables with daily observation on indexes
By Kiku Steinfeld
Chicago, Dec. 20 – BofA Finance LLC priced $919,000 of market-linked securities – callable with daily observation and with contingent downside due April 29, 2027 linked to the lowest performing 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 quarterly coupon at par plus 11.75% yearly if each index closes at or above 70% of its initial level every trading day of that quarter.
The notes will be callable at par on any quarterly observation date.
If the notes are not called and each index finishes at or above its 60% downside threshold, the payout at maturity will be par. Otherwise, investors will be fully exposed to the 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 daily observation and with contingent downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Nasdaq-100 index
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| Amount: | $919,000
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| Maturity: | April 29, 2027
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| Coupon: | 11.75% annualized, payable quarterly, if each index closes at or above its coupon barrier level every trading day of that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, full exposure to decline of worst performer from initial level
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| Call option: | At par on any quarterly observation date
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| Initial levels: | 4,137.04 for S&P 500, 1,788.874 for Russell 2000 index, 12,969.76 for Nasdaq-100 index
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| Coupon barrier levels: | 2,895.928 for S&P 500, 1,252.2118 for Russell 2000 index, 9,078.832 for Nadaq-100 index, 70% of initial levels
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| Downside threshold levels: | 2,482.224 for S&P 500, 1,073.3244 for Russell 2000 index, 7,781.856
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| for Nadaq-100 index, 60% of initial levels
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| Pricing date: | April 24, 2023
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| Settlement date: | April 27, 2023
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| Agents: | Wells Fargo Securities, LLC and BofA Securities, Inc.
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| Fees: | 1.525%
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| Cusip: | 09709VTR7
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