BofA Finance plans market-linked step-up notes tied to index basket

By Sarah Lizee

Olympia, Wash., Oct. 9 – BofA Finance LLC plans to price 0% market-linked step-up notes due October 2021 linked to a global equity index basket, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Bank of America Corp.

The basket consists of the S&P 500 index with an initial weight of 75% and the Euro Stoxx 50 index with an initial weight of 25%.

If the basket finishes above its step-up level – 117% to 123% of the initial level – the payout at maturity will be par plus the gain.

If the basket gains by up to the step-up level, the payout will be par plus the step-up return of 17% to 23%.

Investors will receive par if the basket falls by up to 5% and will be exposed to any losses beyond 5%.

BofA Merrill Lynch is the agent.

The notes will price in October and settle in November.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.