Published on 5/19/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $5.06 million 10.95% contingent income on sector funds
Chicago, May 19 – BofA Finance LLC priced $5.06 million of contingent income autocallable securities due May 15, 2026 linked to the worst performing of the Consumer Staples Select Sector SPDR fund, Energy Select Sector SPDR fund and Health Care Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.95%, paid quarterly, if each underlying fund closes at or above its 60% coupon barrier on the related quarterly observation date.
The securities will be called automatically starting Aug. 14 at par if the price of each underlying fund is greater than or equal to its initial price on any quarterly call determination date.
At maturity the payout will be par unless the worst performing ETF closes below its 60% downside threshold level in which case investors will be fully exposed to the decline of the worst performing ETF.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent with Morgan Stanley Wealth Management as structurer.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income autocallable securities
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| Underlying ETFs: | Consumer Staples Select Sector SPDR fund, Energy Select Sector SPDR fund and Health Care Select Sector SPDR fund
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| Amount: | $5,064,000
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| Maturity: | May 15, 2026
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| Coupon: | 10.95% annual rate, paid quarterly, if each underlying fund closes at or above its 60% coupon barrier on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par unless the worst performing ETF closes below its downside threshold level in which case investors will be fully exposed to the decline in the worst performing ETF
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| Call: | Automatically starting Aug. 14 at par if the price of each underlying fund is greater than or equal to its initial price on any quarterly call determination date
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| Initial levels: | $77.12, for consumer, $78.52, for energy, $132.19, for health care
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| Downside thresholds: | $46.27 for consumer, $47.11 for energy, $79.31 for health care, 60% of initial levels
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| Coupon barriers: | $46.27 for consumer, $47.11 for energy, $79.31 for health care, 60% of initial levels
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| Pricing date: | May 12
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| Settlement date: | May 17
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| Agent: | BofA Securities, Inc. with Morgan Stanley Wealth Management as structurer
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| Fees: | 2.25%
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| Cusip: | 09709VWG7
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