BofA intends to price contingent income autocallables on index, fund

By Devika Patel

Knoxville, Tenn., Dec. 17 – BofA Finance LLC plans to sell contingent income autocallable notes due July 2, 2026 linked to the worst performing of the Russell 2000 index and the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are guaranteed by Bank of America Corp.

Each quarter, the notes will pay a contingent monthly payment at a rate of 11% per year if each underlying closes at or above its threshold level, 80% of its initial level, on the observation date for that month.

Beginning Dec. 27, 2019, BofA will automatically call the notes at par plus the contingent coupon on any quarterly determination date other than the final one if the closing level of each underlying is greater than or equal to its initial level.

If each underlying finishes at or above its threshold level, the payout at maturity will be par plus the final contingent coupon.

Otherwise, investors will lose 1% for each 1% decline of the worst performing underlying from its initial level.

BofA Merrill Lynch is the agent.

The notes (Cusip: 09709TKY6) will price on Dec. 28 and settle Jan. 2.

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