BofA Finance plans contingent income notes tied to indexes, energy fund

By Angela McDaniels

Tacoma, Wash., Feb. 7 – BofA Finance LLC plans to price contingent income issuer callable notes due Feb. 11, 2022 linked to the least performing of the S&P 500 index, the Russell 2000 index and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Bank of America Corp.

Each quarter, the notes will pay a contingent coupon if each underlier closes at or above its threshold value, 60% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be at least 7.1% per year and will be set at pricing.

The payout at maturity will be par unless any underlier finishes below its threshold value, in which case investors will lose 1% for every 1% that the least-performing underlier declines from its initial level.

Beginning Feb. 11, 2020, the notes will be callable at par on any interest payment date.

BofA Merrill Lynch is the agent.

The notes will price Feb. 8.

The Cusip number is 09709TNB3.

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