Published on 12/28/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $2.41 million 8.3% callable contingent income securities linked to Russell 2000
New York, Dec. 28 – BofA Finance LLC priced $2.41 million of callable contingent income securities due Oct. 2, 2025 linked to Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 8.3%, paid quarterly, if the underlying index closes at or above its 70% coupon barrier on the related quarterly observation date.
The securities may be called at par on any quarterly call date starting Jan. 4, 2024.
At maturity, the payout will be par unless the underlying index finishes below its 70% downside threshold, in which case investors will be fully exposed to the decline of the index.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent. Morgan Stanley will act as distributor.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Callable contingent income securities
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| Underlying index: | Russell 2000 index
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| Amount: | $2,408,000
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| Maturity: | Oct. 2, 2025
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| Coupon: | 8.3%, paid quarterly, if the underlying index closes at or above its 70% coupon barrier on the related quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless the index finishes below its downside threshold level, in which case investors will be fully exposed to the decline in the underlying index
|
| Call option: | At par on any quarterly call date starting Jan. 4, 2024
|
| Initial level: | 1,785.102
|
| Downside threshold: | 1,249.571, 70% of initial level
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| Coupon barrier: | 1,249.571, 70% of initial level
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| Pricing date: | Sept. 29
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| Settlement date: | Oct. 4
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| Agent: | BofA Securities, Inc.
|
| Distributor: | Morgan Stanley
|
| Fees: | 2% including a structuring fee of 0.5%
|
| Cusip: | 09711AQM3
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