By William Gullotti
Buffalo, N.Y., March 7 – BofA Finance LLC priced $2.29 million of market-linked securities – autocallable with contingent coupon with memory feature and contingent downside due Feb. 26, 2027 linked to the stock performance of Honeywell International Inc., Exxon Mobil Corp. and Charles Schwab Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.3% if each stock closes at or above its 65% coupon threshold on the observation date for that period. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be called at par plus the coupon if each stock closes at or above the initial level on any quarterly observation date after six months.
The payout at maturity will be par plus the final coupon if each stock finishes at or above its coupon threshold.
If the worst performer finishes below its coupon threshold but at or above the 60% downside threshold, the payout will be par. Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
The notes are guaranteed by Bank of America Corp.
Wells Fargo Securities, LLC 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: | Market linked securities – autocallable with contingent coupon with memory feature and contingent downside
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| Underlying stocks: | Honeywell International Inc., Exxon Mobil Corp., Charles Schwab Corp.
|
| Amount: | $2,286,000
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| Maturity: | Feb. 26, 2027
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| Coupon: | 11.3% annualized, payable quarterly if each stock closes at or above coupon threshold on observation date for that period; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
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| Payout at maturity: | Par plus the final coupon if each stock finishes at or above coupon threshold; if worst performer finishes below coupon threshold but at or above downside threshold, par; otherwise, 1% loss per 1% decline of worst performer from its initial level
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly observation date after six months
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| Initial levels: | $200.63 for Honeywell, $103.84 for Exxon Mobil, $64.44 for Schwab
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| Coupon thresholds: | $130.4095 for Honeywell, $67.496 for Exxon Mobil, $41.886 for Schwab; 65% of initial levels
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| Downside thresholds: | $120.378 for Honeywell, $62.304 for Exxon Mobil, $38.664 for Schwab; 60% of initial levels
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| Pricing date: | Feb. 23
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| Settlement date: | Feb. 28
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| Agents: | Wells Fargo Securities, LLC and BofA Securities, Inc.
|
| Fees: | 2.325%
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| Cusip: | 09710PW93
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