Published on 1/2/2024 in the Prospect News Structured Products Daily.
New Issue: BofA prices $30,000 dual directional notes linked to Dow, S&P
By Angela McDaniels
Tacoma, Wash., June 2 – BofA Finance LLC priced $30,000 of 0% dual directional notes due May 4, 2026 linked to the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the lesser performing index’s final level is greater than or equal to its initial level, the payout at maturity will be par plus 110% of that index’s return, subject to a maximum return of 40%.
If the lesser performing index’s final level is less than its initial level but greater than or equal to its threshold level, 70% of its initial level, the payout will be par plus the absolute value of that index’s return.
If the lesser performing index’s final level is less than its threshold level, investors will be exposed to that index’s decline 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: | Dual directional notes
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| Underlying indexes: | Dow Jones industrial average and S&P 500 index
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| Amount: | $30,000
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| Maturity: | May 4, 2026
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If lesser performing index’s final level is greater than or equal to initial level, par plus 110% of that index’s return, subject to maximum return of 40%; if lesser performing index’s final level is less than initial level but greater than or equal to threshold level, par plus absolute value of that index’s return; otherwise, exposure to lesser performing index’s decline from initial level
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| Initial levels: | 34,098.16 for Dow and 4,169.48 for S&P
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| Threshold levels: | 23,868.71 for Dow and 2,918.64 for S&P, or 70% of initial levels
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| Pricing date: | April 28, 2023
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| Settlement date: | May 3, 2023
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| Agent: | BofA Securities, Inc.
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| Fees: | 0.85%
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| Cusip: | 09709VR57
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