Published on 2/28/2024 in the Prospect News Structured Products Daily.
New Issue: BofA sells $6.31 million market-linked notes with contingent downside on indexes
Chicago, Feb. 28 – BofA Finance LLC priced $6.31 million of market-linked securities – callable with contingent coupon and contingent downside due Feb. 25, 2027 linked to the performance of the S&P 500 index, the Russell 2000 index and the Nasdaq-100 Technology Sector index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly 9% coupon if each index closes above its 70% coupon barrier on the related determination date.
The notes will be callable quarterly at par starting after six months.
If the notes are not called at maturity and each index finishes at or above its 70% downside threshold, the payout at maturity will be par. Otherwise, investors will be fully exposed to the 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, Nasdaq-100 Technology Sector index
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| Amount: | $6,307,000
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| Maturity: | Feb. 25, 2027
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| Coupon: | 9% per year, payable quarterly if each index closes above its 70% coupon barrier on the related determination date
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| Price: | Par
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| Payout at maturity: | If the notes are not called and each index finishes at or above downside threshold, par; otherwise, full exposure to decline of worst performer from initial level
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| Call: | At par on any quarterly optional redemption date starting after six months
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| Initial levels: | 4,981.80 for S&P, 1,994.743 for Russell, 9,939.39 for tech index
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| Coupon barrier levels: | 3,487.26 for S&P, 1,396.3201 for Russell, 6,957.573 for tech index; 70% of initial levels
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| Downside thresholds: | 3,487.26 for S&P, 1,396.3201 for Russell, 6,957.573 for tech index; 70% of initial levels
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| Pricing date: | Feb. 21
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| Settlement date: | Feb. 26
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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: | 09710PVS2
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