BofA plans contingent income buffered autocallables linked to ETFs

By Angela McDaniels

Tacoma, Wash., May 14 – BofA Finance LLC plans to price contingent income buffered autocallable yield notes due Dec. 3, 2026 linked to the lesser performing of the Technology Select Sector SPDR fund and the SPDR S&P Biotech exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Bank of America Corp.

Each month, the notes will pay a contingent coupon if each underlying closes at or above its coupon barrier, 80% of its initial level, on the observation date for that month. The contingent coupon rate is expected to be 7.5% to 8.5% per year and will be set at pricing.

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

If the notes are not called and each underlying closes at or above its threshold value, 80% of its initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the lesser-performing underlying declines beyond 20%.

BofA Merrill Lynch is the agent.

The notes will price May 28.

The Cusip number is 09709TQQ7.

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