Published on 12/13/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $26.61 million trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 13 – BofA Finance LLC priced $26.61 million of trigger callable contingent yield notes with daily coupon observation due June 11, 2026 linked to the worst performing of the Dow Jones industrial average, the Russell 2000 index 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 12.7% if each index’s closing level is at least 70% of its initial level every day that period.
The notes are callable at par plus any coupon otherwise due on any quarterly observation date.
If the notes have not been called and each index finishes at or above its 55% knock-in level, the payout will be par plus any contingent coupon due.
Otherwise, investors will lose 1% for every 1% that the worst performer finishes below its initial level.
The notes are guaranteed by Bank of America Corp.
UBS Financial Services Inc. and BofA Securities, Inc. are the agents.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Trigger callable contingent yield notes with daily coupon observation
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index, S&P 500 index
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| Amount: | $26,612,600
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| Maturity: | June 11, 2026
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| Coupon: | 12.7% per year, payable quarterly if each index closes at or above its coupon barrier level every day that period
|
| Price: | Par of $10
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| Payout at maturity: | Par plus any final coupon unless worst performer finishes below knock-in level, in which case 1% loss for every 1% decline of laggard index
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| Call option: | At par plus any coupon otherwise due on any quarterly observation date
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| Initial levels: | 3,933.92 for S&P, 1,806.901 for Russell, 33,597.92 for Dow
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| Coupon barrier levels: | 2,753.74 for S&P, 1,264.831 for Russell, 23,518.54 for Dow; 70% of initial levels
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| Knock-in levels: | 2,163.66, for S&P, 993.796 for Russell, 18,478.86 for Dow; 55% of initial levels
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| Pricing date: | Dec. 7
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| Settlement date: | Dec. 12
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| Agents: | UBS Financial Services Inc. and BofA Securities, Inc.
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| Fees: | 1%
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| Cusip: | 09710H591
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