Published on 2/7/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $5.78 million contingent income issuer callable yield notes on three indexes
Chicago, Feb. 7 – BofA Finance LLC priced $5.78 million of contingent income issuer callable yield notes due May 2, 2025 linked to the worst performing of the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.5% if each underlying index closes at or above its 75% 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 six months.
The payout at maturity will be par plus the final coupon if each index finishes at or above its 75% threshold level. Otherwise, investors will be fully exposed to the decline of the 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
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Guarantor: | Bank of America Corp.
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Issue: | Contingent income issuer callable yield notes
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Underlying indexes: | S&P 500 index, Russell 2000, Dow Jones industrial average
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Amount: | $5,784,000
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Maturity: | May 2, 2025
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Coupon: | 9.5% annualized rate, payable quarterly if each index closes at or above its coupon barrier on observation date for that period
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Price: | Par
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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 initial level
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Call option: | At par plus any coupon due on any quarterly determination date after six months
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Initial levels: | 4,131.93 S&P, 1,864.103 for Russell, 32,977.21 for Dow
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Coupon barriers: | 3,098.95 for S&P, 1,398.077 for Russell, 24,732.91 for Dow; 75% of initial levels
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Downside thresholds: | 3,098.95 for S&P, 1,398.077 for Russell, 24,732.91 for Dow; 75% of initial levels
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Pricing date: | April 29, 2022
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Settlement date: | May 4, 2022
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Selling agent: | BofA Securities, Inc.
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Fees: | 0.5%
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Cusip: | 09709UP44
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