Published on 9/27/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.25 million contingent income buffered autocallables linked to S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Sept. 27 – BofA Finance LLC priced $1.25 million of contingent income buffered autocallable yield notes due Sept. 27, 2028 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 6.75% if each index closes at or above its coupon threshold level, 80% of its initial level, on the observation date for that month.
Beginning in September 2024, the notes will be automatically called at par if both indexes close at or above their initial levels on any monthly determination date.
The payout at maturity will be par if each index finishes at or above its threshold level, 85% of its initial level. Otherwise, investors will lose 1% for each 1% decline of the worst performer beyond 15%.
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 buffered autocallable yield notes
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| Underlying indexes: | S&P 500 index and Russell 2000 index
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| Amount: | $1.25 million
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| Maturity: | Sept. 27, 2028
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| Coupon: | 6.75% per year, payable monthly if each index closes at or above coupon threshold level on the observation date for that month
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| Price: | Par
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| Payout at maturity: | Par if each index finishes at or above threshold level; otherwise, 1% loss for each 1% decline of worst performer beyond 15%
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| Call: | Beginning in September 2024, automatically at par if both indexes close at or above initial levels on any monthly determination date
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| Initial levels: | 4,320.06 for S&P, 1,776.503 for Russell
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| Coupon thresholds: | 3,456.05 for S&P, 1,421.202 for Russell; 80% of initial levels
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| Threshold levels: | 3,672.05 for S&P, 1,510.028 for Russell; 85% of initial levels
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| Pricing date: | Sept. 22
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| Settlement date: | Sept. 27
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| Agent: | BofA Securities, Inc.
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| Fees: | 3.75%
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| Cusip: | 09711APP7
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