BofA Finance plans Strategic Accelerated Redemption securities on basket

By Emma Trincal

New York, July 20 – BofA Finance plans to price Strategic Accelerated Redemption Securities due August 2022 linked to an equally-weighted basket of three sector indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Bank of America Corp.

The basket consists of the Financials Select Sector index, the Energy Select Sector index and the Health Care Select Sector index.

The notes will be called at a premium of 11% to 12% per year if the closing level of the basket is greater than its starting value on any observation date, six, nine, and 12 months after the pricing date. Previously unpaid call premiums will also be paid. The exact call premium will be set at pricing.

If the notes are not called, the payout at maturity will be par of $10 plus the return of the basket with full exposure to the decline.

BofA Securities, Inc. is the agent.

The notes will price in July and settle in August.

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