Published on 6/2/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $30,000 dual directional notes linked to Dow, S&P 500
By Angela McDaniels
Tacoma, Wash., June 2 – BofA Finance LLC priced $30,000 of 0% dual directional notes due May 4, 2026 linked to the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the final level of the lesser performing index is greater than or equal to its initial level, the payout at maturity will be par plus 1.1 times the lesser performing index’s return, subject to a maximum payout of $1,400 per $1,000 principal amount of notes.
If the final level of the lesser performing index is less than its initial level but greater than or equal to its threshold level, 70% of its initial level, the payout will be par plus the absolute value of the lesser performing index’s return.
If the final level of the lesser performing index is less than its threshold level, investors will lose 1% for every 1% that the lesser performing index declines from its initial level.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Dual directional notes
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| Underlying indexes: | Dow Jones industrial average and S&P 500 index
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| Amount: | $30,000
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| Maturity: | May 4, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If lesser performing index’s final level is greater than or equal to initial level, par plus 1.1 times lesser performing index’s return, subject to cap of 40%; if final level of lesser performing index is less than initial level but greater than or equal to threshold level, par plus absolute value of lesser performing index’s return; otherwise, exposure to decline of lesser performing index
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| Initial levels: | 34,098.16 for Dow and 4,169.48 for S&P
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| Threshold levels: | 23,868.71 for Dow and 2,918.64 for S&P, or 70% of initial levels
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| Pricing date: | April 28
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| Settlement date: | May 3
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| Agent: | BofA Securities, Inc.
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| Fees: | 0.85%
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| Cusip: | 09709VR57
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