BofA Finance plans contingent income autocallables tied to three ETFs

By Angela McDaniels

Tacoma, Wash., July 9 – BofA Finance LLC plans to price contingent income autocallable yield notes due July 29, 2022 linked to the least performing of the Consumer Staples Select Sector SPDR fund, the iShares U.S. Real Estate exchange-traded fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon if each fund closes at or above its threshold value, 75% of its initial share price, on the observation date for that month. The contingent coupon rate is expected to be 7.5% to 9.5% per year and will be set at pricing.

Beginning in January 2020, the notes will be automatically called at par if each fund closes at or above its initial share on any quarterly call observation date.

If the notes are not called, the payout at maturity will be par unless any fund finishes below its threshold value, in which case investors will lose 1% for every 1% that the least-performing fund declines from its initial share price.

The notes will be guaranteed by Bank of America Corp.

BofA Securities Inc. is the agent.

The notes will price July 26.

The Cusip number is 09709TUJ8.

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