Published on 1/29/2024 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.63 million contingent market-linked callable notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Jan. 29 – BofA Finance LLC priced $1.63 million of market-linked securities due Jan. 22, 2027 – callable with contingent coupon and contingent downside – linked to the lowest performing of the Russell 2000 index, the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
The notes will pay a contingent quarterly coupon at an 8.51% rate if all indexes close above their 70% interest barrier levels on the observation date that period.
The notes will be callable on any quarterly observation date after six months.
The payout at maturity will be par unless any index finishes below its 70% downside threshold, in which case the payout will be par plus the return of the worst performing index with full exposure to losses.
BofA Securities, Inc. and Wells Fargo Securities, LLC are the agents.
| Issuer: | BofA Finance LLC
|
| 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 indexes: | Russell 2000 index, S&P 500 index, Nasdaq-100 index
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| Amount: | $1,631,000
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| Maturity: | Jan. 22, 2027
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| Coupon: | 8.51% annual rate, payable quarterly if all indexes finish above interest barrier levels on the observation date that period
|
| Price: | Par
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| Payout at maturity: | Par unless any index finishes below downside threshold, in which case 1% loss per 1% decline of the worst performing index from its initial level
|
| Call: | At par on any quarterly observation date after six months
|
| Initial levels: | 4,765.98 for S&P, 1,927.304 for Russell, 16,830.71 for Nasdaq
|
| Interest barrier levels: | 3,336.186 for S&P, 1,349.1128 for Russell, 11,781.497 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 3,336.186 for S&P, 1,349.1128 for Russell, 11,781.497 for Nasdaq; 70% of initial levels
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| Pricing date: | Jan. 16
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| Settlement date: | Jan. 19
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| Agent: | BofA Securities, Inc. and Wells Fargo Securities, LLC
|
| Fees: | 2.325%
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| Cusip: | 09710PLU8
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