BofA plans contingent income autocallables on VanEck Vectors Gold

By Devika Patel

Knoxville, Tenn., July 3 – BofA Finance LLC plans to price contingent income autocallable securities due July 31, 2020 linked to the VanEck Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Bank of America Corp.

If the fund closes at or above the barrier level, 70% of the initial share price, on a semiannual determination date, the notes will pay a contingent payment that semiannual period at an annualized rate of 8% to 9%, with the exact coupon to be set at pricing.

The notes will be called at par of $10 plus the contingent coupon if the fund closes at or above the initial share price on any semiannual determination date beginning Jan. 26, 2018.

If the final share price is greater than or equal to the 70% barrier level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

BofA Merrill Lynch is the agent.

The notes (Cusip: 09709TAQ4) are expected to price on July 26 and settle on July 31.

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