Published on 9/20/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $47.36 million leveraged market-linked step-up notes linked to index basket
By William Gullotti
Buffalo, N.Y., Sept. 20 – BofA Finance LLC priced $47.36 million of leveraged market-linked step-up notes due Sept. 25, 2025 linked to a weighted basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
BofA sold 4,735,973 units with a face amount of $10 each, for a total principal amount of $47,359,730. The issuer sold 1,407,000 units to an individual investor at $9.95 per unit and the remainder to the public at par of $10, for total proceeds of $47,289,380.
The basket consists of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the FTSE China 50 index with a 5% weight.
If the basket finishes above the step-up level – 115.05% of the initial level – the payout at maturity will be par of $10 plus 1.5 times the basket return.
If the basket finishes flat or gains by up to the step-up level, the payout will be par plus the step-up payment of 15.05%.
Investors will be fully exposed to any basket decline.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Leveraged market-linked step-up notes
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| Underlying indexes: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 index (7.5% weight), FTSE China 50 index (5% weight)
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| Principal amount: | $47,359,730
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| Proceeds: | $47,289,380
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| Maturity: | Sept. 25, 2025
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| Coupon: | 0%
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| Price: | $9.95 per unit for 1,407,000 units; par of $10 for remainder
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| Payout at maturity: | If the basket finishes above the step-up level, par plus 1.5 times the basket return; if the basket finishes flat or gains up to the step-up level, par plus 15.05%; otherwise, full exposure to any basket decline
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| Initial index levels: | 4,295.05 for Stoxx, 7,711.38 for FTSE, 33,533.09 for Nikkei, 11,197.72 for Swiss Market, 7,279.03 for S&P/ASX, 12,263.19 for FTSE China
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| Step-up value: | 115.05% of initial level
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 22
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| Underwriter: | BofA Securities, Inc.
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| Fees: | 1.5% for 1,407,000 units; 2% for remainder
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| Cusip: | 09710N101
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