By Wendy Van Sickle
Columbus, Ohio, May 22 – BofA Finance LLC priced $10 million of buffered contingent income autocallable securities with memory coupon and downside leverage due May 28, 2024 linked to the SPDR S&P 500 ETF trust, 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 12.8% if the ETF closes at or above its 87% coupon barrier on the corresponding observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial share price on any quarterly determination date.
If the final share price is greater than or equal to the downside threshold level, 87% of initial level, the payout at maturity will be par plus all unpaid coupons.
Otherwise, investors will lose 1.1494% for every 1% decline of the ETF beyond 13%.
BofA Securities, Inc. is the agent with Morgan Stanley Smith Barney LLC as dealer.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Buffered contingent income autocallable securities with memory coupon and downside leverage
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| Underlying fund: | SPDR S&P 500 ETF trust
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| Amount: | $10,000,000
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| Maturity: | May 28, 2024
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| Coupon: | 12.8% per year, payable quarterly if shares close at or above coupon barrier level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | Par plus the final coupon unless ETF finishes below downside threshold level, in which case investors will lose 1.1494% for every 1% decline of the ETF beyond 13%
|
| Call: | At par plus contingent coupon if shares close at or above initial share price on any quarterly determination date
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| Initial share price: | $410.25
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| Coupon barrier: | $356.9175; 87% of initial share price
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| Downside threshold: | $356.9175; 87% of initial share price
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| Pricing date: | May 16
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| Trade date: | May 17
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| Settlement date: | May 22
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| Agent: | BofA Securities, Inc. with Morgan Stanley Smith Barney LLC as dealer
|
| Fees: | 0.1%
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| Cusip: | 09709VXY7
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