Published on 2/5/2024 in the Prospect News Structured Products Daily.
New Issue: BofA prices $907,000 10.25% contingent income issuer callable notes on three indexes
By Kiku Steinfeld
Chicago, Feb. 5 – BofA Finance LLC priced $907,000 of contingent income issuer callable yield notes due March 25, 2027 linked to the Dow Jones industrial average, Nasdaq-100 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.25%, paid monthly, if each underlying index closes at or above its 70% coupon barrier on the related monthly observation date.
The securities may be called starting Sept. 26, 2023 on any monthly call date.
If the worst performing index gains or ends above its 60% threshold value the payout at maturity will be par plus the contingent coupon. Investors will lose 1% for every 1% that the worst performing index declines if it finishes below its threshold value.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable yield notes
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| Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index and Russell 2000 index
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| Amount: | $907,000
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| Maturity: | March 25, 2027
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| Coupon: | 10.25%, paid monthly, if each underlying index closes at or above its 70% coupon barrier on the related monthly observation date
|
| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above its 60% threshold value, par; 1% loss for every 1% that worst performing index declines if it finishes below its threshold value
|
| Call: | Starting Sept. 26, 2023 on any monthly call date
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| Initial levels: | 33,951.52 for Dow, 14,867.45 for Nasdaq, 1,863.015 for Russell
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| Downside thresholds: | 20,370.91 for Dow, 8,920.47 for Nasdaq, 1,117.809 for Russell, 60% of initial level
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| Coupon barriers: | 23,766.06 for Dow, 10,407.22 for Nasdaq, 1,304.111 for Russell, 70% of initial levels
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| Pricing date: | June 21, 2023
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| Settlement date: | June 26, 2023
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| Agent: | BofA Securities, Inc.
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| Fees: | 0.25%
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| Cusip: | 09711A4P0
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