Published on 1/9/2024 in the Prospect News Structured Products Daily.
New Issue: BofA prices $2.24 million contingent income autocallable yield notes on two ETFs
New York, Jan. 9 – BofA Finance LLC priced $2.24 million of contingent income autocallable yield notes due April 7, 2025 linked to the Invesco QQQ Trust, Series 1 and the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 7.5%, paid monthly, if each ETF closes at or above its 75% coupon barrier on the related monthly observation date.
The securities will be called automatically at par if the closing level of each ETF is greater than or equal to its initial level on any monthly determination date starting in July 2024.
If the notes have not been called, the payout at maturity will be par unless either ETF closes below its 75% downside threshold on any trading day during the life of the notes and either ETF finishes below its initial level, in which case investors will lose 1% for every 1% that the worst performer declines from initial level.
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 autocallable yield notes
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| Underlying funds: | Invesco QQQ Trust, Series 1 and SPDR S&P 500 ETF Trust
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| Amount: | $2,242,000
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| Maturity: | April 7, 2025
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| Coupon: | 7.5%, paid monthly, if each ETF closes at or above its 75% coupon barrier on the related monthly observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless either ETF closes below its downside threshold on any trading day during the life of the notes and either ETF finishes below its initial level, in which case investors will lose 1% for every 1% that the worst performer declines from initial level
|
| Call: | Automatically at par if the closing level of each ETF is greater than or equal to its initial level on any monthly determination date starting in July 2024
|
| Initial levels: | $402.59 for Invesco QQQ Trust, Series 1, $472.65 for SPDR S&P 500 ETF Trust
|
| Downside thresholds: | $301.94 for Invesco QQQ Trust, Series 1, $354.49 for SPDR S&P 500 ETF Trust, 75% of initial levels
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| Coupon barriers: | $301.94 for Invesco QQQ Trust, Series 1, $354.49 for SPDR S&P 500 ETF Trust, 75% of initial levels
|
| Pricing date: | Jan. 2
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| Settlement date: | Jan. 5
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| Agent: | BofA Securities, Inc.
|
| Fees: | 1.5%
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| Cusip: | 09710PFL5
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