Published on 4/18/2024 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.5 million contingent income autocallable yield notes on three stocks
By William Gullotti
Buffalo, N.Y., April 18 – BofA Finance LLC priced $1.5 million of contingent income (with memory feature) autocallable yield notes due April 1, 2027 tied to the stock performance of Advanced Micro Devices, Inc., Nvidia Corp. and United Rentals, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 14.3509% per year if each stock closes at or above its coupon barrier level, 60% of its initial level, on the observation date that period. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be automatically called at par plus the coupon if each stock closes at or above its initial level on any quarterly call determination date after one year.
If the notes are not called and each stock finishes at or above its 60% downside threshold 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 (with memory feature) autocallable yield notes
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| Underlying stocks: | Advanced Micro Devices, Inc., Nvidia Corp., United Rentals, Inc.
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| Amount: | $1,496,000
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| Maturity: | April 1, 2027
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| Coupon: | 14.3509% per year, payable monthly if each stock closes at or above coupon barrier level on any observation date; coupon payment events will automatically include any previously unpaid coupons
|
| 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
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| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call determination date after one year
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| Initial levels: | $180.49 for AMD, $903.56 for Nvidia, $721.11 for United Rentals
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| Coupon barriers: | $108.29 for AMD, $542.14 for Nvidia, $432.67 for United Rentals; 60% of initial levels
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| Downside threshold levels: | $108.29 for AMD, $542.14 for Nvidia, $432.67 for United Rentals; 60% of initial levels
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| Pricing date: | March 28
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| Settlement date: | April 3
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| Agent: | BofA Securities, Inc.
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| Fees: | 3.25%
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| Cusip: | 09711BH82
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