BofA plans market-linked step-up autocallables linked to index basket

By Devika Patel

Knoxville, Tenn., Sept. 17 – BofA Finance LLC plans to price autocallable market-linked step-up notes due September 2023 linked to an equally weighted basket of two indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Bank of America Corp.

The underlying components are the S&P 500 index and the Euro Stoxx 50 index, each with a 50% weight each.

The notes will be called at par of $10 plus an annual call premium of 7.5% to 8.5% if the basket closes at or above its initial level on any of the annual observation dates beginning in October 2019. The exact call premium will be set at pricing.

If the basket finishes above the step-up level – 130% of the initial level – the payout at maturity will be par of $10 plus the basket gain.

If the basket is unchanged or gains by up to the step-up level, the payout will be par plus the step-up payment of 30%.

Investors will receive par if the basket falls by up to 10% and will lose 1% for each 1% decline beyond 10%.

BofA Merrill Lynch is the agent.

The notes will price in September and settle in October.

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