Published on 1/16/2024 in the Prospect News Structured Products Daily.
New Issue: BofA sells $3.96 million contingent income autocallable yield notes on stocks
By Wendy Van Sickle
Columbus, Ohio, Jan. 16 – BofA Finance LLC priced $3.96 million of contingent income autocallable yield notes due Jan. 8, 2027 tied to the stocks of Meta Platforms, Inc., Nvidia Corp. and Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly contingent coupon at the rate of 18.45% per year if each stock closes at or above its coupon barrier level, 50% 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 one year.
If the notes are not called and each stock finishes at or above its downside threshold level, 50% of its initial level, the payout at maturity will be par plus the final coupon.
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
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Guarantor: | Bank of America Corp.
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Issue: | Contingent income autocallable yield notes
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Underlying stocks: | Meta Platforms, Inc., Nvidia Corp. and Tesla, Inc.
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Amount: | $3.96 million
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Maturity: | Jan. 8, 2027
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Coupon: | 18.45% per year, paid monthly, if the underlying index closes at or above its 50% coupon barrier on the related monthly observation date
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Price: | Par
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Payout at maturity: | If each stock finishes at or above downside threshold, par plus final coupon; otherwise, full exposure to decline of lowest-performing stock from its initial level
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Call option: | At par plus coupon if each stock closes at or above its initial level on any monthly call determination date after one year
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Initial levels: | $351.95 for Meta, $490.97 for Nvidia, $237.49 for Tesla
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Downside threshold: | $175.98 for Meta, $245.49 for Nvidia, $118.75 for Tesla, 50% of initial levels
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Coupon barrier: | $175.98 for Meta, $245.49 for Nvidia, $118.75 for Tesla, 50% of initial levels
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Pricing date: | Jan. 5
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Settlement date: | Jan. 9
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Agent: | BofA Securities, Inc.
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Fees: | 0%
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Cusip: | 09710PK21
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