BofA Finance to price market-linked step-up notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Nov. 29 – BofA Finance LLC plans to price 0% market-linked step-up notes due December 2018 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be guaranteed by Bank of America Corp.

If the final index level is greater than the step-up value, the payout at maturity will be par of $10 plus the index return. The step-up value is expected to be 110% to 116% of the initial index level.

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, which is expected to be 10% to 16%.

If the final index level is less than the initial level, investors will have one-to-one exposure to the decline.

The exact terms will be set at pricing.

BofA Merrill Lynch is the agent.

The notes will price and settle in December.

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