Published on 11/3/2023 in the Prospect News Structured Products Daily.
New Issue: BofA sells $1.2 million market-linked notes with contingent downside on indexes
Chicago, Nov. 3 – BofA Finance LLC priced $1.2 million of market-linked securities – callable with contingent coupon and contingent downside due Nov. 3, 2027 linked to the lowest performing of the S&P 500 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a 10.51% contingent coupon quarterly if all three indexes close above their 75% coupon barrier on the related observation date.
The notes will be callable at par quarterly starting after six months at the option of the issuer.
The payout at maturity will be par unless any underlier finishes below its 75% downside threshold, in which case investors will lose 1% for every 1% decline of the worst performer from its initial level.
Bank of America Corp. is the guarantor.
BofA Securities, Inc. and Wells Fargo Securities, LLC are the agents.
| Issuer: | BofA Finance LLC
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| Guarantor: | Bank of America Corp.
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| Issue: | Market linked securities – callable with contingent coupon and contingent downside
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| Underlying assets: | S&P 500 index, Russell 2000 index, Euro Stoxx 50 index
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| Amount: | $1,202,000
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| Maturity: | Nov. 3, 2027
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| Coupon: | 10.51% annual rate, payable quarterly if all three indexes close above coupon barrier level on related observation date
|
| Price: | Par
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| Payout at maturity: | Par if all three indexes close above downside threshold; otherwise, full exposure to losses of worst performer
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| Call: | At par quarterly starting after six months at option of issuer
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| Initial levels: | 4,117.37 for S&P, 1,636.938 for Russell, 4,014.36 for Stoxx
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| Coupon barrier levels: | 3,088.0275 for S&P, 1,227.7035 for Russell, 3,010.77 for Stoxx; 75% of initial levels
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| Downside thresholds: | 3,088.0275 for S&P, 1,227.7035 for Russell, 3,010.77 for Stoxx; 75% of initial levels
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| Pricing date: | Oct. 27
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| Settlement date: | Nov. 1
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| Agents: | BofA Securities, Inc. and Wells Fargo Securities, LLC
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| Fees: | 2.325%
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| Cusip: | 09711AX78
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