BofA to price notes with absolute return buffer tied to index basket

By Sarah Lizee

Olympia, Wash., July 9 – BofA Finance LLC plans to price 0% notes with absolute return buffer due July 2022 linked to a basket of indexes, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Bank of America Corp.

The basket consists of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei 225 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 basket finishes at or above the initial level, the payout at maturity will be par plus the return of the basket, capped at par plus 50% to 60%.

If the basket falls by up to 15%, the payout at maturity will be par plus the absolute value of the basket decline.

If the basket falls by more than 15%, investors will be fully exposed to any losses beyond the buffer.

BofA Securities, Inc. is the agent.

The notes will price in July and settle in August.

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