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BofA plans contingent income autocallables linked to two ETFs
By Sarah Lizee
Olympia, Wash., June 3 – BofA Finance LLC plans to price contingent income autocallable yield notes due June 12, 2024 linked to the Financial Select Sector SPDR fund and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be guaranteed by Bank of America Corp.
Each quarter, the notes will pay a contingent coupon if each ETF closes at or above its threshold value, 60% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be 8.5% per year and will be set at pricing.
Beginning in June 2020, the notes will be automatically called at par if each ETF closes at or above its initial level on any observation date other than the final one.
If the notes are not called and each ETF closes at or above its threshold value, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser-performing ETF declines from its initial level.
BofA Merrill Lynch is the agent.
The notes will price June 7.
The Cusip number is 09709TRL7.
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