Published on 2/8/2024 in the Prospect News Structured Products Daily.
New Issue: BofA prices $960,000 contingent market-linked callable notes on three indexes
Chicago, Feb. 8 – BofA Finance LLC priced $960,000 of market-linked securities due May 22, 2026 – callable with contingent coupon with daily observation and contingent downside – linked to the lowest performing of the Russell 2000 index, the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
The notes will pay a contingent quarterly coupon at a 10.25% rate if all indexes close above their 70% interest barrier levels on every trading day during the relevant observation period.
The notes will be callable at par on any quarterly observation date after one year.
The payout at maturity will be par unless any index finishes below its 60% downside threshold, in which case the payout will be par plus the return of the worst performing index with full exposure to losses.
BofA Securities, Inc. and Wells Fargo Securities, LLC 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 with daily observation and contingent downside
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Nasdaq-100 index
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| Amount: | $960,000
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| Maturity: | May 22, 2026
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| Coupon: | 8.51% annual rate, payable quarterly if all indexes finish above interest barrier levels on every trading day during observation period
|
| Price: | Par
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| Payout at maturity: | Par unless any index finishes below downside threshold, in which case 1% loss per 1% decline of the worst performing index from its initial level
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| Call: | At par on any quarterly observation date after one year
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| Initial levels: | 4,191.98 for S&P, 1,773.717 for Russell, 13,803.49 for Nasdaq
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| Interest barrier levels: | 2,934.386 for S&P, 1,241.6019 for Russell, 9,662.443 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 2,515.188 for S&P, 1,064.2302 for Russell, 8,282.094 for Nasdaq; 60% of initial levels
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| Pricing date: | May 19, 2023
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| Settlement date: | May 24, 2023
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| Agent: | BofA Securities, Inc. and Wells Fargo Securities, LLC
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| Fees: | 1.525%
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| Cusip: | 09709VXS0
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