Published on 4/26/2024 in the Prospect News Structured Products Daily.
New Issue: BofA sells $2 million callable contingent market-linked notes with downside on indexes
By William Gullotti
Buffalo, N.Y., April 26 – BofA Finance LLC priced $2 million of market-linked securities – callable with contingent coupon and contingent downside due April 24, 2028 linked to the performance of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.55% if each index closes at or above its 75% coupon threshold on the relevant observation date.
After six months, the notes may be redeemed early at par plus any coupon otherwise due on any quarterly determination date.
If the notes are not redeemed and each index finishes at or above its 75% downside threshold, the payout will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% 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 contingent coupon and contingent downside
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $2 million
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| Maturity: | April 24, 2028
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| Coupon: | 9.55% annualized, payable quarterly if each index closes at or above coupon threshold on the relevant observation date
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above its downside threshold, par plus final coupon; otherwise, 1% loss per 1% decline of worst performer from its initial level
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| Call option: | At par plus any coupon otherwise due on any quarterly determination date after six months
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| Initial levels: | 4,967.23 for S&P, 1,947.656 for Russell, 4,918.09 for Stoxx
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| Coupon thresholds: | 3,725.4225 for S&P, 1,460.742 for Russell, 3,688.5675 for Stoxx; 75% of initial levels
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| Downside thresholds: | 3,725.4225 for S&P, 1,460.742 for Russell, 3,688.5675 for Stoxx; 75% of initial levels
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| Pricing date: | April 19
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| Settlement date: | April 24
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| Agents: | Wells Fargo Securities, LLC and BofA Securities, Inc.
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| Fees: | 2.325%
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| Cusip: | 09711BQW9
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