Published on 11/1/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $4.32 million autocallable market-linked step-up notes on index basket
By Wendy Van Sickle
Columbus, Ohio, Nov. 1 – BofA Finance LLC priced $4.32 million of 0% autocallable market-linked step-up notes due Oct. 30, 2025 linked to an unequally-weighted international equity index basket, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
The basket consists of the Euro Stoxx 50 index with an initial weight of 40%, the FTSE 100 index and the Nikkei Stock Average index each with an initial weight of 20%, the Swiss Market index and the S&P/ASX 200 index each with an initial weight of 7.5% and the FTSE China 50 index with an initial weight of 5%.
The notes will be automatically called at par plus a 14.1% annual call premium if the basket closes at or above its initial level on any annual observation date.
If the basket finishes above the step-up level, 140% of the initial level, the payout at maturity will be par plus the basket gain.
If the basket finishes flat or gains up to the step-up level, the payout will be par plus the step-up payment of 40%.
Investors will be fully exposed to any basket decline.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Autocallable market-linked step-up notes
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| Underlying stocks: | Euro Stoxx 50 (40% weight), FTSE 100 (20% weight), Nikkei Stock (20% weight), Swiss Market (7.5% weight), S&P/ASX 200 (7.5% weight), FTSE China 50 (5% weight)
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| Amount: | $4,324,380
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| Maturity: | Oct. 30, 2025
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| Coupon: | 0%
|
| Price: | Par of $10
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| Payout at maturity: | If the basket finishes above the step-up level, par plus the basket gain; if the basket finishes flat or gains up to the step-up level, par plus 40%; otherwise, full exposure to basket decline from initial level
|
| Call: | Automatically at par plus a 14.1% annual call premium if the basket closes at or above its initial level on any annual observation date
|
| Initial level: | 3,604.51 for Stoxx, 7,073.69 for FTSE, 27,345.24 for Nikkei, 10,706.62 for Swiss, 6,845.133 for S&P/ASX, 9,943.68 for FTSE China 50
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| Step-up value: | 140% of initial level
|
| Pricing date: | Oct. 27
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| Settlement date: | Nov. 3
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| Underwriter: | BofA Securities, Inc.
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| Fees: | 2%
|
| Cusip: | 06054B792
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