Published on 7/12/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.71 million contingent income buffered issuer callable notes on indexes
By William Gullotti
Buffalo, N.Y., July 12 – BofA Finance LLC priced $1.71 million of contingent income buffered issuer callable yield notes due June 30, 2028 linked to the worst 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 quarterly coupon at an annual rate of 9.25% if each underlying index closes at or above its 85% coupon barrier on the observation date for that period.
The notes are callable at par plus any coupon otherwise due on any quarterly determination date after one year.
The payout at maturity will be par plus the final coupon unless any index finishes below its 85% threshold level, in which case investors will lose 1% for every 1% decline of the worst performer below 15%.
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 buffered issuer callable yield notes
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| Underlying indexes: | Russell 2000, S&P 500 index
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| Amount: | $1.71 million
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| Maturity: | June 30, 2028
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| Coupon: | 9.25% annualized rate, payable quarterly if each index closes at or above its coupon barrier on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above buffer level, par plus final coupon; otherwise, 1% loss for each 1% decline of worst performing index below 15%
|
| Call option: | At par plus any coupon due on any quarterly determination date after one year
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| Initial levels: | 1,849.93 for Russell, 4,378.41 for S&P
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| Coupon barriers: | 1,572.441 for Russell, 3,721.65 for S&P; 85% of initial levels
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| Buffer levels: | 1,572.441 for Russell, 3,721.65 for S&P; 85% of initial levels
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| Pricing date: | June 27
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| Settlement date: | June 30
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| Selling agent: | BofA Securities, Inc.
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| Fees: | 3.75%
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| Cusip: | 09711A2Q0
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