BofA to sell contingent income autocallables on S&P, Russell indexes

By Devika Patel

Knoxville, Tenn., Aug. 24 – BofA Finance LLC plans to price contingent income autocallable notes due Aug. 29, 2025 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Bank of America Corp.

Each quarter, the notes will pay a contingent quarterly payment at a rate of 6% per year if each index closes at or above its threshold level, 75% of its initial index level, on the observation date for that quarter.

Beginning Aug. 26, 2019, BofA will automatically call the notes at par of $1,000 plus the contingent coupon on any quarterly determination date other than the final one if the closing level of each index is greater than or equal to its initial level.

If each index finishes at or above its threshold level, the payout at maturity will be par plus the final contingent coupon.

Otherwise, investors will lose 1% for each 1% decline of the worst performing index from its initial level.

BofA Merrill Lynch is the agent.

The notes (Cusip: 09709TFW6) will price on Aug. 28 and settle Aug. 31.

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