Published on 7/6/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $808,000 8.5% contingent income autocallable yield notes on three stocks
By Kiku Steinfeld
Chicago, July 6 – BofA Finance LLC priced $808,000 of contingent income autocallable yield notes due Feb. 13, 2026 linked to the stocks of Walt Disney Co., Target Corp. and Costco Wholesale Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 8.5%, paid monthly, if the lowest performing stock closes at or above its 60% coupon barrier level on the related monthly observation date.
The securities may be called automatically starting in May 2023 at par on any monthly determination date if each stock closes at or above its initial level.
If the lowest performing stock gains or ends above its 60% threshold value, the payout at maturity will be par plus the contingent coupon. Investors will lose 1% for every 1% that the lowest performing stock declines if it finishes below its threshold value.
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: | Contingent income autocallable yield notes
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| Underlying stocks: | Walt Disney Co., Target Corp. and Costco Wholesale Corp.
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| Amount: | $808,000
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| Maturity: | Feb. 13, 2026
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| Coupon: | 8.5%, paid monthly, if the lowest performing stock closes at or above its 60% coupon barrier level on the related monthly observation date
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| Price: | Par
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| Payout at maturity: | If the lowest performing stock finishes at or above its 60% threshold value, par; 1% loss for every 1% that lowest performing stock declines if it finishes below its threshold value
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| Call: | Automatically starting in May 2023 at par on any monthly determination date if each stock closes at or above its initial level
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| Initial levels: | $499.99 for Costco, $170.02 for Target and $108.06 for Disney
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| Downside threshold levels: | $299.99 for Costco, $102.01 for Target and $64.84 for Disney, 60% of initial levels
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| Coupon barrier levels: | $299.99 for Costco, $102.01 for Target and $64.84 for Disney, 60% of initial levels
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| Pricing date: | Feb. 10
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| Settlement date: | Feb. 15
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| Agent: | BofA Securities, Inc.
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| Fees: | 3.5%
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| Cusip: | 09709VGK6
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