Published on 8/28/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $3.66 million market-linked autocalls with contingent downside on stocks
By Wendy Van Sickle
Columbus, Ohio, Aug. 28 – BofA Finance LLC priced $3.66 million of market-linked securities – autocallable with contingent coupon and contingent downside due Aug. 21, 2026 linked to the stock performance of Apple Inc., Amazon.com, Inc. and Alphabet Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 16.35% if each stock closes at or above its 70% coupon threshold on the observation date for that period.
The notes will be called at par plus the coupon if each stock closes at or above the initial level on any quarterly observation date after six months.
The payout at maturity will be par plus the final coupon if each stock finishes at or above its 70% downside threshold.
Otherwise, investors will lose 1% for every 1% decline of the worst performer from its initial level.
The notes are guaranteed by Bank of America Corp.
Wells Fargo Securities, LLC and BofA Securities, Inc. are the agents.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
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| Underlying stocks: | Apple Inc., Amazon.com, Inc., Alphabet Inc.
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| Amount: | $3,661,000
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| Maturity: | Aug. 21, 2026
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| Coupon: | 16.35% annualized, payable quarterly if each stock closes at or above coupon threshold on observation date for that period
|
| Price: | Par
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| Payout at maturity: | Par plus the final coupon if each stock finishes at or above downside threshold; otherwise, 1% loss per 1% decline of worst performer from its initial level
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly observation date after six months
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| Initial levels: | $174.49 for Apple, $133.22 for Amazon, $127.46 for Alphabet
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| Coupon thresholds: | $122.143 for Apple, $93.254 for Amazon, $89.222 for Alphabet; 70% of initial levels
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| Downside thresholds: | $122.143 for Apple, $93.254 for Amazon, $89.222 for Alphabet; 70% of initial levels
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| Pricing date: | Aug. 18
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| Settlement date: | Aug. 23
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| Agents: | Wells Fargo Securities, LLC and BofA Securities, Inc.
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| Fees: | 2.325%
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| Cusip: | 09711AEZ7
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