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

By Sarah Lizee

Olympia, Wash., Nov. 8 – BofA Finance LLC plans to price market-linked step-up notes due November 2023 linked to a basket of indexes, according to an FWP filed with the Securities and Exchange Commission.

The basket consists of the MSCI Emerging Markets index with a weight of 50%, the Euro Stoxx 50 index with a weight of 20%, the FTSE 100 index with a weight of 10%, the Nikkei Stock Average index with a weight of 10%, the Swiss Market index with a weight of 3.75%, the S&P/ASX 200 index with a weight of 3.75% and the Hang Seng index with a weight of 2.5%.

If the basket finishes at or above the step-up level – 138% to 144% of the initial level – the payout at maturity will be par of $10 plus the index gain.

If the basket gains by up to the step-up level, the payout will be par plus the step-up payment of 38% to 44%.

If the basket falls by up to 20%, the payout will be par.

Otherwise, investors will lose 1% for each 1% decline beyond the buffer.

The notes are guaranteed by Bank of America Corp.

BofA Merrill Lynch is the agent.

The notes will price in November and settle in December.

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