Published on 4/26/2024 in the Prospect News Structured Products Daily.
New Issue: BofA prices $1.07 million 10.85% contingent income autocallable notes on three ETFS
By Kiku Steinfeld
Chicago, April 26 – BofA Finance LLC priced $1.07 million of contingent income autocallable yield notes due Aug. 5, 2025 linked to the iShares MSCI Emerging Markets ETF, iShares Russell 2000 ETF and VanEck Oil Services ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.85%, paid quarterly plus any previously unpaid coupons, if each underlier closes at or above its 50% coupon barrier on the related quarterly observation date.
The securities may be called automatically starting in January 2024 at par if the level of each underlier is greater than or equal to its initial price and on any subsequent quarterly observation date.
If the worst performing asset gains or ends above its 50% threshold value the payout at maturity will be par plus the contingent coupon. Investors will lose 1% for every 1% that the worst performing asset declines if it finishes below its threshold value.
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 assets: | iShares MSCI Emerging Markets ETF, iShares Russell 2000 ETF and VanEck Oil Services ETF
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| Amount: | $1,065,000
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| Maturity: | Aug. 5, 2025
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| Coupon: | 10.85%, paid quarterly plus any previously unpaid coupons, if each underlier closes at or above its 50% coupon barrier on the related quarterly observation date
|
| Price: | Par
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| Payout at maturity: | If worst performing asset finishes at or above its 50% threshold value, par; 1% loss for every 1% that worst performing asset declines if it finishes below its threshold value
|
| Call: | Automatically starting in January 2024 at par if the level of each underlier is greater than or equal to its initial price and on any subsequent quarterly observation date
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| Initial levels: | $343.74 for VanEck Oil Services ETF, $41.95 for iShares MSCI Emerging Markets ETF, $198.71 for iShares Russell ETF
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| Downside thresholds: | $171.87 for VanEck Oil Services ETF, $20.98 for iShares MSCI Emerging Markets ETF, $99.36 for iShares Russell ETF, 50% of initial level
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| Coupon barriers: | $171.87 for VanEck Oil Services ETF, $20.98 for iShares MSCI Emerging Markets ETF, $99.36 for iShares Russell ETF, 50% of initial levels
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| Pricing date: | July 31, 2023
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| Settlement date: | Aug. 3, 2023
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| Agent: | BofA Securities, Inc.
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| Fees: | 1.75%
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| Cusip: | 09711AF45
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