Published on 9/7/2022 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.7 million contingent income callable yield notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 7 – BofA Finance LLC priced $1.7 million of contingent income issuer callable yield notes due Sept. 5, 2025 linked to the worst performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 11.5% if each underlying index closes at or above its 70% coupon barrier on the relevant observation date.
The notes are callable at par on any quarterly optional call date after six months.
The payout at maturity will be par plus any final coupon if each index finishes at or above its 70% threshold level. Otherwise, investors will be fully exposed to any 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, Nasdaq-100 index, Dow Jones industrial average
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Amount: | $1,703,000
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Maturity: | Sept. 5, 2025
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Coupon: | 11.5% annualized rate, payable monthly if each index closes at or above its coupon barrier on the corresponding observation date
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Price: | Par
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Payout at maturity: | If each index finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index from its initial level
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Call: | At par on any quarterly optional call date after six months
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Initial levels: | 12,272.03 for Nasdaq, 1,844.115 for Russell, 31,510.43 for Dow
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Coupon barriers: | 8,590.42 for Nasdaq, 1,290.881 for Russell, 22,057.3 for Dow; 70% of initial levels
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Downside thresholds: | 8,590.42 for Nasdaq, 1,290.881 for Russell, 22,057.3 for Dow; 70% 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: | 0.7%
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Cusip: | 09709U4X3
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