Published on 4/18/2024 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.39 million contingent income issuer callable yield notes with memory
By William Gullotti
Buffalo, N.Y., April 18 – BofA Finance LLC priced $1.39 million of contingent income issuer callable yield notes due April 13, 2027 linked to the worst performing of the Nasdaq-100 Technology Sector index, the Russell 2000 index and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.5% if each underlier closes at or above its 75% coupon barrier on the observation date for that period. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes are callable at par plus any coupon due on any quarterly determination date after one year.
If the notes are not called and each underlier finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
Investors will receive par if the worst performer finishes below its coupon barrier but at or above its 65% downside threshold level. 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 selling agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income issuer callable yield notes
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| Underlying assets: | Nasdaq-100 Technology Sector index, Russell 2000, Technology Select Sector SPDR Fund
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| Amount: | $1,393,000
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| Maturity: | April 13, 2027
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| Coupon: | 10.5% annualized rate, payable quarterly if each underlier closes at or above its coupon barrier on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | If the final level of each underlier is greater than or equal to coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above downside threshold, par; otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level
|
| Call option: | At par plus any coupon due on any quarterly determination date after one year
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| Initial levels: | $206.21 for ETF, 10,309.02 for Nasdaq Tech, 2,073.713 for Russell
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| Coupon barriers: | $154.66 for ETF, 7,731.77 for Nasdaq Tech, 1,555.285 for Russell; 75% of initial levels
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| Downside thresholds: | $134.04 for ETF, 6,700.86 for Nasdaq Tech, 1,347.913 for Russell; 65% of initial levels
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| Strike date: | April 8
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| Pricing date: | April 9
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| Settlement date: | April 11
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 0.25%
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| Cusip: | 09711BP34
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