Published on 7/1/2022 in the Prospect News Structured Products Daily.
New Issue: BofA prices $7.15 million of trigger autocallable contingent yield notes on two indexes
By Wendy Van Sickle
Columbus, Ohio, July 1 – BofA Finance LLC priced $7.15 million of trigger autocallable contingent yield notes due July 2, 2025 linked to the lesser performing of the S&P 500 index and the Dow Jones industrial average, 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 10% 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 each index finishes at or above its coupon barrier.
If the worst performer finishes below its coupon barrier but at or above the downside threshold level, 70% of its initial level, the payout will be par. Otherwise, investors will lose 1% for every 1% loss of the worst performer 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: | S&P 500 index, Dow Jones industrial average
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| Amount: | $7,149,630
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| Maturity: | July 2, 2025
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| Coupon: | 10% annual rate, payable quarterly if each index closes at or above coupon barrier on quarterly observation date
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| Price: | Par of $10
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| Payout at maturity: | Par plus the final coupon if each index finishes at or above coupon barrier; if worst performer finishes below coupon barrier but not downside threshold, par; otherwise, 1% loss for each 1% decline of worse performing index from initial level
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| Call: | At par plus coupon if both indexes close at or above initial levels on any quarterly observation date after six months
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| Initial index levels: | 3,821.55 for S&P, 30,946.99 for Dow
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| Coupon barrier levels: | 2,675.09 for S&P, 21,662.89 for Dow; 70% of initial levels
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| Downside thresholds: | 2,675.09 for S&P, 21,662.89 for Dow; 70% of initial levels
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| Pricing date: | June 30
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| Settlement date: | July 2
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| Agents: | UBS Financial Services Inc. and BofA Securities, Inc.
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| Fees: | 0%
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| Cusip: | 09710G437
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