Published on 6/22/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $769,000 autocallable notes linked to Dow, Russell, S&P
By Angela McDaniels
Tacoma, Wash., June 22 – BofA Finance LLC priced $769,000 of 0% autocallable notes due July 29, 2027 linked to the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus 10.75% per year if each index closes at or above its call level on any of four annual observation dates. The call level is 100% of the initial index level on the first observation date and steps down by 2.5% per year.
If the final level of the least performing index is greater than or equal to its redemption barrier, 90% of its initial level, the payout at maturity will be par plus 53.75%.
If the final level of the least performing index is less than its redemption barrier but greater than or equal to its threshold level, 65% of its initial level, the payout will be par.
If the final level of the least performing index is less than its threshold level, investors will lose 1% for every 1% that the least performing index declines from its initial level.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Autocallable notes
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
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| Amount: | $769,000
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| Maturity: | July 29, 2027
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If least performing index’s final level is greater than or equal to redemption barrier, par plus 53.75%; if least performing index’s final level is less than redemption barrier but greater than or equal to threshold level, par; otherwise, 1% loss for every 1% that least performing index declines from initial level
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| Call: | Automatically at par plus 10.75% per year if each index closes at or above call level on any of four annual observation dates; call level is 100% of initial index level on first observation date and steps down by 2.5% per year
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| Initial levels: | 31,761.54 for Dow, 1,805.246 for Russell and 3,921.05 for S&P
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| Redemption barriers: | 28,585.39 for Dow, 1,624.721 for Russell and 3,528.95 for S&P, or 90% of initial levels
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| Threshold levels: | 20,645.00 for Dow, 1,173.410 for Russell and 2,548.68 for S&P, or 65% of initial levels
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| Pricing date: | July 26, 2022
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| Settlement date: | July 29, 2022
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| Agent: | BofA Securities, Inc.
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| Fees: | 3.3%
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| Cusip: | 09709U3J5
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