Published on 11/30/2023 in the Prospect News Structured Products Daily.
New Issue: BofA prices $400,000 18.4% contingent income autocallable yield notes on stocks
By Kiku Steinfeld
Chicago, Nov. 30 – BofA Finance LLC priced $400,000 of contingent income autocallable yield notes due April 24, 2025 linked to Charles Schwab Corp., Apple Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 18.4%, paid monthly, if the lesser performing stock closes at or above its 60% coupon barrier on the related monthly observation date, plus any previously unpaid coupons.
The securities may be called automatically starting in October 2023 at par on any quarterly call determination date if each stock closes at or above its initial level.
If the lesser performing stock gains or ends above its 60% threshold value the payout at maturity will be par plus the contingent coupon. Investors will lose 1% for every 1% that the lesser performing stock 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 stocks: | Charles Schwab Corp., Apple Inc. and Microsoft Corp.
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| Amount: | $400,000
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| Maturity: | April 24, 2025
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| Coupon: | 18.4%, paid monthly, if the lesser performing stock closes at or above its 60% coupon barrier on the related monthly observation date, plus any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If lesser performing stock finishes at or above its 60% threshold value, par; 1% loss for every 1% that lesser performing stock declines if it finishes below its threshold value
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| Call: | Automatically starting in October 2023 at par on any quarterly call determination date if each stock closes at or above its initial level
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| Initial levels: | $167.63 for Apple, $55.55 for Schwab, $288.45 for Microsoft
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| Downside thresholds: | $100.58 for Apple, $33.33 for Schwab, $173.07 for Microsoft, 60% of initial levels
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| Coupon barriers: | $100.58 for Apple, $33.33 for Schwab, $173.07 for Microsoft, 60% of initial levels
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| Pricing date: | April 19, 2023
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| Settlement date: | April 24, 2023
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| Agent: | BofA Securities, Inc.
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| Fees: | 0.25%
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| Cusip: | 09709VT55
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