BofA Finance plans 8% STEP Income notes linked to United Technologies

By Angela McDaniels

Tacoma, Wash., Sept. 13 – BofA Finance LLC plans to price 8% STEP Income Securities due October 2020 linked to the common stock of United Technologies Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable quarterly.

If the final price of United Technologies stock is greater than or equal to the step level, 108% of the initial share price, the payout at maturity will be par of $10 plus the step payment, which is expected to be 1% to 5% and will be set at pricing.

If the final share price is greater than or equal to the initial share price but less than the step level, investors will receive par.

If the final share price is less than the initial share price, investors will be exposed to the decline.

The initial share price will be the volume-weighted average price of the stock taking place from 9:30 a.m. to 4:05 p.m. on all U.S. exchanges on the pricing date.

The notes will be guaranteed by Bank of America Corp.

BofA Securities Inc. is the agent.

The notes will price in September and settle in October.

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