BofA Finance plans leveraged absolute return notes linked to indexes

By Angela McDaniels

Tacoma, Wash., May 14 – BofA Finance LLC plans to price 0% leveraged index return notes with absolute return buffer due May 2022 linked to an index basket, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Bank of America Corp.

The basket includes the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 index with a 7.5% weight and the Hang Seng index with a 5% weight.

If the final basket level is greater than the initial basket level, the payout at maturity will be par of $10 plus 110% to 130% of the basket return. The exact participation rate will be set at pricing.

If the final basket level is less than or equal to the initial basket level but greater than or equal to the threshold value, 85% of the initial basket level, the payout will be par plus the absolute value of the basket return.

If the final basket level is less than the threshold level, investors will lose 1% for every 1% that the basket declines beyond 15%.

BofA Merrill Lynch is the agent.

The notes will price in May.

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