Published on 10/24/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $6.85 million contingent income issuer callable yield notes on three indexes
By William Gullotti
Buffalo, N.Y., Oct. 24 – BofA Finance LLC priced $6.85 million of contingent income issuer callable yield notes due Oct. 23, 2023 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 15.25% 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 monthly determination date after three months.
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 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: | Nasdaq-100 index, Russell 2000, Euro Stoxx 50 index
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| Amount: | $6.85 million
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| Maturity: | Oct. 23, 2023
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| Coupon: | 15.25% annualized rate, payable monthly 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 monthly determination date after three months
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| Initial levels: | 11,147.74 for Nasdaq, 1,755.956 for Russell, 3,463.83 for Stoxx
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| Coupon barriers: | 6,688.64 for Nasdaq, 1,053.574 for Russell, 2,078.3 for Stoxx; 60% of initial levels
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| Downside thresholds: | 6,688.64 for Nasdaq, 1,053.574 for Russell, 2,078.3 for Stoxx; 60% of initial levels
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| Pricing date: | Oct. 18
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| Settlement date: | Oct. 21
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| Selling agent: | BofA Securities, Inc.
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| Fees: | None
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| Cusip: | 09709V5Z5
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