BofA plans to price autocallable step-up notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Jan. 24 – BofA Finance LLC plans to price 0% autocallable market-linked step-up notes due February 2025 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be guaranteed by Bank of America Corp.

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 6.5% to 7.5% 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, 130% 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, 30%.

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%.

BofA Merrill Lynch is the agent.

The notes will price in February.

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