Published on 7/11/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $5.08 million contingent income autocallable yield notes on three tech stocks
By William Gullotti
Buffalo, N.Y., July 11 – BofA Finance LLC priced $5.08 million of contingent income autocallable yield notes due July 6, 2026 tied to the stock performance of Alphabet Inc., Apple Inc. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 18.5% per year if each stock closes at or above its coupon barrier level, 50% of its initial level, on the observation date that period.
The notes will be automatically called at par plus the coupon if each stock closes at or above its initial level on any monthly call determination date after one year.
If the notes are not called and each stock finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income autocallable yield notes
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| Underlying stocks: | Alphabet Inc., Apple Inc., Tesla, Inc.
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| Amount: | $5,081,000
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| Maturity: | July 6, 2026
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| Coupon: | 18.5% per year, payable monthly if each stock closes at or above coupon barrier level on any observation date
|
| Price: | Par
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| Payout at maturity: | If each stock finishes at or above downside threshold, par plus final coupon; otherwise, full exposure to decline of lowest-performing stock from its initial level
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any monthly call determination date after one year
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| Initial levels: | $120.97 for Alphabet, $193.97 for Apple, $261.77 for Tesla
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| Coupon barriers: | $60.49 for Alphabet, $96.99 for Apple, $130.89 for Tesla; 50% of initial levels
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| Downside threshold levels: | $60.49 for Alphabet, $96.99 for Apple, $130.89 for Tesla; 50% of initial levels
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| Pricing date: | June 30
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| Settlement date: | July 6
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| Agent: | BofA Securities, Inc.
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| Fees: | None
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| Cusip: | 09711A5X2
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