BofA plans to sell Bear Stars due 2021 linked to S&P 500 index

By Emma Trincal

New York, Aug. 13 – BofA Finance LLC plans to price 0% Bear Strategic Accelerated Redemption Securities due September 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called automatically at par plus a premium on any quarterly valuation date after six months if the index closes at or below its initial level on the related observation date.

The premium will be 7.25% to 7.75% on February 2021, 10.875% to 11.625% on May 2021 and 14.5% to 15.5% on September 2021.

The exact call premium percentages will be set at pricing.

If the notes are not called and the final level of the index closes at or below its initial level, the payout at maturity will be par plus the premium applicable to the final observation date.

If the index finishes positive, investors will lose 1% for every 1% increase of the index.

The notes are guaranteed by Bank of America Corp.

BofA Securities, Inc. is the agent.

The notes will price in August and settle in September.

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