Published on 10/26/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $6.74 million contingent income issuer callable yield notes on Dow, S&P
By William Gullotti
Buffalo, N.Y., Oct. 26 – BofA Finance LLC priced $6.74 million of contingent income issuer callable yield notes due Sept. 19, 2025 linked to the worst performing of the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.4% if each underlying index closes at or above its 60% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon otherwise due on any quarterly determination date after one year.
The payout at maturity will be par plus the final coupon unless any index finishes below its 60% threshold level, in which case investors will lose 1% for each 1% decline of worst performing index from its initial level.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the selling agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
|
| Issue: | Contingent income issuer callable yield notes
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| Underlying indexes: | Dow Jones industrial average, S&P 500 index
|
| Amount: | $6,737,000
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| Maturity: | Sept. 19, 2025
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| Coupon: | 8.4% annualized rate, payable quarterly if each index closes at or above its coupon barrier on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index from its initial level
|
| Call option: | At par plus any coupon due on any quarterly determination date after one year
|
| Initial levels: | 30,822.42 for Dow, 3,873.33 for S&P
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| Coupon barriers: | 18,493.45 for Dow, 2,324.0 for S&P; 60% of initial levels
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| Downside thresholds: | 18,493.45 for Dow, 2,324.0 for S&P; 60% of initial levels
|
| Pricing date: | Sept. 16
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| Settlement date: | Sept. 21
|
| Selling agent: | BofA Securities, Inc.
|
| Fees: | 0.7%
|
| Cusip: | 09709V2R6
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