BofA Finance plans autocallable step-up notes linked to Russell 2000

By Angela McDaniels

Tacoma, Wash., June 13 – BofA Finance LLC plans to price 0% autocallable market-linked step-up notes due June 2024 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at par of $10 plus a call premium if the index closes at or above the initial index level on any annual observation date. The call premium is expected to be 6% to 7% per year and will be set at pricing.

If the notes are not called and the final index level is greater than the step-up value, 135% of the initial index level, the payout at maturity will be par plus the index return.

If the final index level is greater than or equal to the initial level but less than or equal to the step-up value, the payout will be par plus the step-up payment, 35%.

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

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

The notes will be guaranteed by Bank of America Corp.

BofA Securities Inc. is the agent.

The notes will price in June and settle in July.

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