BofA plans to sell Capped Leveraged Return Notes tied to index basket

By Devika Patel

Knoxville, Tenn., Sept. 19 – BofA Finance LLC intends to price Capped Leveraged Index Return Notes due March 2021 linked to a basket of unequally weighted indexes, according to a 424 filing with the Securities and Exchange Commission.

The notes are guaranteed by Bank of America Corp.

The basket components are the S&P 500 index with a 50% weight, the Euro Stoxx 50 index with a 20% weight, the FTSE 100 Index with a 10% weight, the Nikkei Stock Average index with a 10% weight, the Swiss Market index with a 3.75% weight, the S&P/ASX 200 index with a 3.75% weight and the Hang Seng Index with a 2.5% weight.

If the basket return is positive, the payout at maturity will be par plus double the basket return, subject to a maximum payout that is expected to fall between 21% and 25% and will be set at pricing.

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

BofA Merrill Lynch will be the agent.

The notes are expected to price in September and settle in October.

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