Published on 3/1/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $17.61 million autocallable market-linked step-up notes on index basket
By William Gullotti
Buffalo, N.Y., March 1 – BofA Finance LLC priced $17.61 million of 0% autocallable market-linked step-up notes due Feb. 27, 2026 linked to a weighted 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 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.
The notes will be automatically called at par plus an 11.7% 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 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)
|
| Amount: | $17,612,030
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| Maturity: | Feb. 27, 2026
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| Coupon: | 0%
|
| Price: | Par of $10
|
| 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 an 11.7% annual call premium if the basket closes at or above its initial level on any annual observation date
|
| Initial index levels: | 4,258.16 for Stoxx, 7,907.72 for FTSE, 27,453.48 for Nikkei, 11,247.75 for Swiss Market, 7,285.397 for S&P/ASX, 13,368.1 for FTSE China
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| Step-up value: | 140% of initial level
|
| Pricing date: | Feb. 23
|
| Settlement date: | March 2
|
| Underwriter: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 06054E317
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