By William Gullotti
Buffalo, N.Y., April 9 – BofA Finance LLC priced $1.71 million of contingent income (with memory feature) autocallable yield notes due April 1, 2027 tied to the stock performance of Paramount Global, Snowflake Inc. and lululemon athletica inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 28.5001% per year if each stock closes at or above its coupon barrier level, 70% of its initial level, on the observation date that period. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be automatically called at par plus the coupon if each stock closes at or above its initial level on any monthly call determination date after six months.
If the notes are not called and each stock finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the lowest-performing stock finishes below its coupon barrier but at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
The notes are guaranteed by Bank of America Corp.
BofA Securities, Inc. is the agent.
| Issuer: | BofA Finance LLC
|
| Guarantor: | Bank of America Corp.
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| Issue: | Contingent income (with memory feature) autocallable yield notes
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| Underlying stocks: | Paramount Global, Snowflake Inc., lululemon athletica inc.
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| Amount: | $1,714,000
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| Maturity: | April 1, 2027
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| Coupon: | 28.5001% per year, payable monthly if each stock closes at or above coupon barrier level on any observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above coupon barrier, par plus final coupon; if the worst performer finishes below coupon barrier but at or above its downside threshold, par; if any stock finishes below downside threshold level, full exposure to decline of lowest-performing stock from its initial level
|
| Call option: | At par plus coupon if each stock closes at or above its initial level on any monthly call determination date after six months
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| Initial levels: | $11.77 for Paramount, $161.60 for Snowflake, $390.65 for lululemon
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| Coupon barriers: | $8.24 for Paramount, $113.12 for Snowflake, $273.46 for lululemon; 70% of initial levels
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| Downside threshold levels: | $5.89 for Paramount, $80.80 for Snowflake, $195.33 for lululemon; 50% of initial levels
|
| Strike date: | March 28
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| Pricing date: | April 3
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| Settlement date: | April 8
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| Agent: | BofA Securities, Inc.
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| Fees: | 0.65%
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| Cusip: | 09711BKL9
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