Published on 1/6/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $9 million trigger callable contingent yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 6 – BofA Finance LLC priced $9 million of trigger callable contingent yield notes with daily coupon observation due March 20, 2025 linked to the worst performing of the Nasdaq-100 index, 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% if each index’s closing level is at least 65% of its initial level every day that period.
The notes are callable at par plus any coupon otherwise due on any quarterly observation date after one year.
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
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| 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: | Nasdaq-100 index, Russell 2000 index, S&P 500 index
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| Amount: | $9 million
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| Maturity: | March 20, 2025
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| Coupon: | 12% per year, payable quarterly if each index closes at or above its coupon barrier level every day that period
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| 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 after one year
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| Initial levels: | 3,895.75 for S&P, 1,774.606 for Russell, 11,345.22 for Nasdaq
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| Coupon barrier levels: | 2,532.24 for S&P, 1,153.494 for Russell, 7,374.39 for Nasdaq; 65% of initial levels
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| Knock-in levels: | 2,142.66 for S&P, 976.033 for Russell, 6,239.87 for Nasdaq; 55% of initial levels
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| Pricing date: | Dec. 15
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| Settlement date: | Dec. 22
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| Agents: | UBS Financial Services Inc. and BofA Securities, Inc.
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| Fees: | 1%
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| Cusip: | 09710H567
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