BofA Finance LLC is offering callable contingent income securities at $1,000.00 per security, while their estimated value on the pricing date is between $920.00 and $970.00 per $1,000. Investors face a lower initial estimated value, no exchange listing, and no assurance that a Secondary Market will develop.
Key Highlights
- Payments depend on the worst-performing member of the S&P 500 Index, Russell 2000 Index and NASDAQ-100 Index group.
- The securities mature on October 5, 2028 and carry a full, unconditional guarantee from Bank of America Corporation.
- Morgan Stanley Wealth Management receives $15.00 for each security sold and a $5.00 structuring fee.
$15.00 Commission and $5.00 Structuring Fee
Their estimated value on the pricing date ranges from $920.00 to $970.00 per $1,000. The public price is $1,000 per security. BofA Securities, Inc. an affiliate of BofA Finance LLC, will act as agent in the distribution. Morgan Stanley Wealth Management and its financial advisers collectively receive a fixed $15.00 sales commission for each security sold, while Morgan Stanley Wealth Management receives a $5.00 structuring fee from the agent or its affiliates. Proceeds to BofA Finance are $980.00 per security.
Initial Value Below Public Price
The estimated value is lower than the public price because the securities include commissions and fees, hedging-related charges and other factors described in the pricing materials. Their value after issuance will also reflect the underlying indices, BofA Finance’s and Bank of America Corporation (NYSE: BAC)’s creditworthiness, and market conditions. The securities will not be listed on an exchange, and BofA Finance cannot assure that a trading market will develop or continue.
FAQs
Q: What is the price of BofA Finance callable contingent income securities?
A: BofA Finance callable contingent income securities carry a public price of $1,000 per security. Their estimated value on the pricing date is between $920.00 and $970.00 per $1,000.
Q: How are payments on BofA Finance securities determined?
A: The securities are due October 5, 2028. The provided materials do not state how payments are determined.
Q: Who receives fees from the BofA Finance securities offering?
A: Morgan Stanley Wealth Management and its financial advisers receive a $15.00 commission for each security sold. Morgan Stanley Wealth Management also receives a $5.00 structuring fee.
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