BofA plans contingent income autocallables linked to Dow, Russell

By Angela McDaniels

Tacoma, Wash., Sept. 23 – BofA Finance LLC plans to price contingent income autocallable yield notes due May 3, 2023 linked to the Dow Jones industrial average and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon if each index closes at or above its threshold value, 75% of its initial level, on the observation date for that quarter. The contingent coupon rate is expected to be 6.25% to 7.25% per year and will be set at pricing.

Beginning in October 2020, the notes will be automatically called at par if each index closes at or above its initial level on any observation date other than the final one.

If the notes are not called and each index finishes at or above its threshold value, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.

The notes will be guaranteed by Bank of America Corp.

BofA Securities Inc. is the agent.

The notes will price Oct. 28.

The Cusip number is 09709TVN8.

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