Market-Linked Step Up Notes Linked to a Global Equity Index Basket | This graph reflects the hypothetical return on the notes, based on the mid-point of the range(s) set forth in the table to the left. This graph has been prepared for purposes of illustration only. | |
Issuer | BofA Finance LLC (BofA Finance) | |
Guarantor | Bank of America Corporation (BAC) | |
Principal Amount | $10.00 per unit | |
Term | Approximately three years | |
Market Measure | A global equity basket comprised of the S&P 500® Index (Bloomberg symbol: SPX) and the EURO STOXX 50® Index (Bloomberg symbol: SX5E). The S&P 500® Index will be given an initial weight of 60% and the EURO STOXX 50® Index will be given an initial weight of 40% | |
Payout Profile at Maturity | ● If the Market Measure is flat or increases up to the Step Up Value, a return equal to the Step Up Payment ● If the Market Measure increases above the Step Up Value, a return equal to the percentage increase in the Market Measure ● 1-to-1 downside exposure to decreases in the Market Measure beyond a 5% decline, with up to 95% of your principal at risk | |
Step Up Value | [116% to 122%] of the Starting Value, to be determined on the pricing date | |
Step Up Payment | [$1.60 to $2.20] per unit, a [16% to 22%] return over the principal amount, to be determined on the pricing date | |
Threshold Value | 95% of the Starting Value | |
Interest Payments | None | |
Preliminary Offering Documents |
https://www.sec.gov/Archives/edgar/data/70858/000152041218000053/bac-kkkj8xtsnokeoobk_2158.htm | |
Exchange Listing | No |
● | Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal. |
● | Payments on the notes are subject to the credit risk of BofA Finance and the credit risk of BAC, and actual or perceived changes in the creditworthiness of BofA Finance and BAC are expected to affect the value of the notes. If BofA Finance and BAC become insolvent or are unable to pay their respective obligations, you may lose your entire investment. |
● | Changes in the level of one of the Basket Components may be offset by changes in the level of the other Basket Components. |
● | The initial estimated value of the notes on the pricing date will be less than their public offering price. |
● | If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date. |
● | You will have no rights of a holder of the securities represented by the Basket Components, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those securities. |
● | Your return on the notes and the value of the notes may be affected by exchange rate movements and factors affecting the international securities markets. |