Published on 2/21/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $10 million of trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 21 – BofA Finance LLC priced $10 million of trigger callable contingent yield notes with daily coupon observation due Feb. 13, 2025 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Nasdaq-10 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
The notes will pay a contingent quarterly coupon at an annual rate of 10.25% if each index closes at or above its coupon barrier, 65% of its initial level, on every day that quarter.
The notes may be called at the option of the issuer at par of $10 plus any contingent coupon due on any quarterly observation date.
The payout at maturity will be par plus the final coupon if each index finishes at or above the coupon barrier.
If the worst performer finishes below the coupon barrier but at or above the downside threshold level, 55% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
UBS Financial Services Inc. 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: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | S&P 500 index, Russell 2000 index, Nasdaq-10 index
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| Amount: | $10 million
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| Maturity: | Feb. 13, 2025
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| Coupon: | 10.25% annual rate, payable quarterly if each index closes at or above coupon barrier on every day that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par plus the final coupon if each index finishes at or above coupon barrier; if worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index from initial level
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| Call: | At par plus any coupon due on any quarterly observation date
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| Initial index levels: | 4,117.86 for S&P, 1,942.599 for Russell, 12,495.38 for Nasdaq
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| Coupon barrier levels: | 2,896.1 for S&P, 1,068.429 for Russell, 8,122.0 for Nasdaq; 65% of initial levels
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| Downside thresholds: | 2,264.82 for S&P, 1,164.686 for Russell, 6,872.46 for Nasdaq; 55% of initial levels
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| Pricing date: | Feb. 14
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| Settlement date: | Feb. 17
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| Agents: | UBS Financial Services Inc. and BofA Securities, Inc.
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| Fees: | 1%
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| Cusip: | 09710K404
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