Published on 4/14/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $21.02 million of trigger autocallable contingent yield notes on two indexes
By William Gullotti
Buffalo, N.Y., April 14 – BofA Finance LLC priced $21.02 million of trigger autocallable contingent yield notes due April 3, 2028 linked to the least performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
The notes will pay a contingent quarterly coupon at an annual rate of 8.2% if each index closes at or above its coupon barrier, 70% of its initial level, on the relevant observation date.
The notes will be called at par of $10 plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par plus the final coupon if each index finishes at or above its coupon barrier.
If the laggard index finishes below its coupon barrier but at or above the downside threshold level, 60% of its initial level, the payout will be par. Otherwise, investors will lose 1% for every 1% loss of the worst performer from its initial level.
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 autocallable contingent yield notes
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| Underlying indexes: | S&P 500 index, Russell 2000 index
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| Amount: | $21,016,970
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| Maturity: | April 3, 2028
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| Coupon: | 8.2% annual rate, payable quarterly if each index closes at or above coupon barrier on quarterly observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus the final coupon if each index finishes at or above its coupon barrier; if laggard index finishes below its coupon barrier but not below downside threshold, par; otherwise, 1% loss for each 1% decline of laggard index from initial level
|
| Call: | At par plus coupon if each index closes at or above initial level on any quarterly observation date after six months
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| Initial index levels: | 4,027.81 for S&P, 1,771.599 for Russell
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| Coupon barrier levels: | 2,819.47 for S&P, 1,240.119 for Russell; 70% of initial levels
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| Downside thresholds: | 2,416.69 for S&P, 1,062.959 for Russell; 60% of initial levels
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| Pricing date: | March 29
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| Settlement date: | March 31
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| Agents: | UBS Financial Services Inc. and BofA Securities, Inc.
|
| Fees: | 2.25%
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| Cusip: | 09710K446
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