Published on 4/26/2024 in the Prospect News Structured Products Daily.
New Issue: BofA prices $4.96 million contingent market-linked callable notes on three indexes
By Kiku Steinfeld
Chicago, April 26 – BofA Finance LLC priced $4.96 million of market-linked securities due July 29, 2027 – callable with contingent coupon and contingent downside – linked to the lowest performing of the Russell 2000 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by Bank of America Corp.
The notes will pay a contingent quarterly coupon at an 10% rate if all indexes close above their 75% interest barrier levels on the observation date that period.
The notes will be callable on any quarterly observation date after six months.
The payout at maturity will be par unless any index finishes below its 75% downside threshold, in which case the payout will be par plus the return of the worst performing index with full exposure to losses.
BofA Securities, Inc. and Wells Fargo Securities, LLC are the agents.
Issuer: | BofA Finance LLC
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Guarantor: | Bank of America Corp.
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Issue: | Market linked securities – callable with contingent coupon and contingent downside
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Underlying indexes: | Russell 2000 index, S&P 500 index, Euro Stoxx 50 index
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Amount: | $4,960,000
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Maturity: | July 29, 2027
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Coupon: | 10% annual rate, payable quarterly if all indexes finish above interest barrier levels on the observation date that period
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Price: | Par
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Payout at maturity: | Par unless any index finishes below downside threshold, in which case 1% loss per 1% decline of the worst performing index from its initial level
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Call: | At par on any quarterly observation date after six months
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Initial levels: | 4,588.96 for S&P, 2,003.177 for Russell, 4,471.31 for Euro Stoxx
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Interest barrier levels: | 3,441.72 for S&P, 1,502.38275 for Russell, 3,353.4825 for Euro Stoxx; 75% of initial levels
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Downside thresholds: | 3,441.72 for S&P, 1,502.38275 for Russell, 3,353.4825 for Euro Stoxx; 75% 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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Agents: | BofA Securities, Inc. and Wells Fargo Securities, LLC
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Fees: | 2.325%
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Cusip: | 09711ACZ9
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