Published on 9/7/2022 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.98 million contingent income callable yield notes on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Sept. 7 – BofA Finance LLC priced $1.98 million of contingent income issuer callable yield notes due Sept. 3, 2027 linked to the least performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 7.75% if each index closes at or above its coupon barrier, 55% of its initial level, on the observation date for that period.
The notes will be callable at par plus any contingent coupon on any semiannual observation date.
The payout at maturity will be par unless any index finishes below its 55% threshold level, in which case investors will be fully exposed to the losses of the worst performing index.
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 indexes: | Russell 2000 index, S&P 500 index
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| Amount: | $1,979,000
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| Maturity: | Sept. 3, 2027
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| Coupon: | 7.75% annual rate, payable semiannually if each index closes at or above coupon barrier on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise 1% loss for each 1% decline of worst performing index
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| Call option: | At par on any semiannual observation date
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| Initial levels: | 1,844.115 for Russell, 3,955.0 for S&P
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| Coupon barriers: | 1,014.263 for Russell, 2,175.25 for S&P, 55% of initial levels
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| Downside thresholds: | 1,014.263 for Russell, 2,175.25 for S&P, 55% of initial levels
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| Pricing date: | Aug. 31
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| Settlement date: | Sept. 6
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 1.5%
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| Cusip: | 09709U6C7
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