Published on 2/7/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $4.84 million 8.3% contingent income issuer callable yield notes on indexes
Chicago, Feb. 7 – BofA Finance LLC priced $4.84 million of contingent income issuer callable yield notes due May 4, 2027 linked to the least performing of the Dow Jones industrial average, Russell 2000 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a contingent coupon of 8.3%, payable semiannually, if on the related observation date all three indexes close above their 60% coupon barrier levels.
The securities may be called at par starting Nov. 3, 2022 on any semiannual determination 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, Russell 2000 index and S&P 500 index
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| Amount: | $4,837,000
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| Maturity: | May 4, 2027
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| Coupon: | 8.3% annual rate, payable semiannually if all three indexes close above their coupon barrier levels on related observation date
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| 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
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| Call: | At par starting Nov. 3, 2022 on any semiannual determination date
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| Initial levels: | 32,977.21 for Dow, 1,864.103 for Russell, 4,131.93 for S&P
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| Downside thresholds: | 19,786.33 for Dow, 1,118.462 for Russell, 2,479.16 for S&P, 60% of initial levels
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| Coupon barriers: | 19,786.33 for Dow, 1,118.462 for Russell, 2,479.16 for S&P, 60% of initial levels
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| Pricing date: | April 29, 2022
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| Settlement date: | May 4, 2022
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| Agent: | BofA Securities, Inc.
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| Fees: | 0%
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| Cusip: | 09709UR59
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