Published on 9/26/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $850,000 10.3% contingent income autocallables linked to Chubb, Hartford
By Angela McDaniels
Tacoma, Wash., Sept. 26 – BofA Finance LLC priced $850,000 of contingent income autocallable yield notes due Sept. 28, 2027 linked to the lesser performing of the common stocks of Chubb Ltd. and Hartford Financial Services Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.3%, paid quarterly, if each stock closes at or above its 55% coupon barrier on the related quarterly observation date.
Starting in March 2023, the securities will be called automatically at par if each stock closes at or above its initial share price on any quarterly observation date.
If each stock finishes at or above its 55% threshold value, the payout at maturity will be par plus the contingent coupon. Investors will lose 1% for every 1% that the lesser-performing stock declines if it finishes below its threshold value.
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: | Chubb Ltd. and Hartford Financial Services Group, Inc.
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| Amount: | $850,000
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| Maturity: | Sept. 28, 2027
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| Coupon: | 10.3%, paid quarterly, if each stock closes at or above its 55% coupon barrier on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above its 55% threshold value, par; 1% loss for every 1% that lesser-performing stock declines if it finishes below its threshold value
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| Call: | Starting in March 2023, automatically at par if each stock closes at or above its initial share price on any quarterly observation date
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| Initial share prices: | $180.29 for Chubb and $61.92 for Hartford
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| Downside threshold: | $99.16 for Chubb and $34.06 for Hartford, 55% of initial share prices
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| Coupon barrier: | $99.16 for Chubb and $34.06 for Hartford, 55% of initial share prices
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| Pricing date: | Sept. 23, 2022
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| Settlement date: | Sept. 28, 2022
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| Agent: | BofA Securities, Inc.
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| Fees: | 1.5%
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| Cusip: | 09709V3N4
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