Published on 2/26/2024 in the Prospect News Structured Products Daily.
New Issue: BofA sells $35 million trigger autocallable contingent yield notes on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 26 – BofA Finance LLC priced $35 million of trigger autocallable contingent yield notes due Feb. 16, 2029 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 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 8.55% 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 any, if each index finishes at or above its 60% downside threshold. Otherwise, investors will lose 1% for every 1% loss of the worst performer declines from its initial level.
UBS Financial Services Inc. and BofA Securities, Inc. are the agents.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Nasdaq-100 index
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| Amount: | $35 million
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| Maturity: | Feb. 16, 2029
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| Coupon: | 8.55% annual rate, payable quarterly if each index closes at or above its coupon barrier on the quarterly observation date
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| Price: | Par of $10
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| Payout at maturity: | Par plus the final coupon, if any, if each index finishes at or its downside threshold; otherwise, 1% loss for each 1% decline of worst performer from initial level
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| Call: | At par plus coupon if each index closes at or above its initial level on any quarterly observation date starting Aug. 20, 2024
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| Initial levels: | 17,600.42 for Nasdaq, 1,964.174 for Russell 2000 index, 4,953.17 for S&P 500 index
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| Coupon barrier levels: | 12,320.29 for Nasdaq, 1,374.922 for Russell 2000 index, 3,467.22 for S&P 500 index, 70% of initial levels
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| Downside thresholds: | 10,560.25 for Nasdaq, 1,178.504 for Russell 2000 index, 2,971.9 for S&P 500 index, 60% of initial levels
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| Pricing date: | Feb. 20
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| Settlement date: | Feb. 22
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| Agents: | UBS Financial Services Inc. and BofA Securities, Inc.
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| Fees: | 1.75%
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| Cusip: | 09710M715
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