Published on 2/8/2024 in the Prospect News Structured Products Daily.
New Issue: BofA sells $781,500 trigger autocallable contingent yield notes on two ETFs
Chicago, Feb. 8 – BofA Finance LLC priced $781,500 of trigger autocallable contingent yield notes due May 22, 2026 linked to the least performing of the SPDR S&P Midcap 400 ETF and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 11.8% per year if each ETF closes at or above its coupon barrier, 70% of its initial level, on the related observation date.
The notes will be automatically called at par plus coupon if each ETF closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and the final level of each ETF is greater than or equal to the downside threshold level, 70% of the initial level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for every 1% that the worst performer declines from its initial level.
UBS Financial Services Inc. 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: | Trigger autocallable contingent yield notes
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| Underlying ETFs: | SPDR S&P Midcap 400 ETF and the Technology Select Sector SPDR Fund
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| Amount: | $781,500
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| Maturity: | May 22, 2026
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| Coupon: | 11.8% per year, paid quarterly, if each ETF closes at or above its coupon barrier on any related observation date
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| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon unless any ETF finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard ETF from initial level
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| Call: | Automatically at par plus coupon if each ETF closes at or above initial level on any quarterly call observation date after six months
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| Initial levels: | $448.80 for SPDR S&P, $157.48 for Tech
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| Coupon barrier levels: | $314.16 for SPDR S&P, $110.24 for Tech; 70% of initial levels
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| Downside thresholds: | $314.16 for SPDR S&P, $110.24 for Tech; 70% of initial levels
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| Pricing date: | May 19, 2023
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| Settlement date: | May 24, 2023
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| Agents: | UBS Financial Services Inc. and BofA Securities, Inc.
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| Fees: | 0%
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| Cusip: | 09710K610
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