Capped LIRNs® Linked to the Brent Crude Oil Futures Contract | 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 14 months | |
Market Measure | The front month futures contract for deliverable grade Brent crude oil (the Brent Crude Oil Futures Contract) traded on the ICE Futures Europe (ICE) and displayed on Bloomberg Page CO1 <CMDTY> (or any applicable successor page). The contract that will be used to determine the Starting Value will be the contract scheduled for delivery in December 2018 and the contract that will be used to determine the Ending Value will be the contract scheduled for delivery in February 2020, subject to adjustment depending on when the pricing date and the calculation day occur. | |
Payout Profile at Maturity | ● 3-to-1 upside exposure to increases in the Market Measure, subject to the Capped Value ● 1-to-1 downside exposure to decreases in the Market Measure beyond a 10.00% decline, with up to 90.00% of your principal at risk | |
Capped Value | [$11.80 to $12.20] per unit, a [18.00% to 22.00%] return over the principal amount, to be determined on the pricing date. | |
Threshold Value | 90% of the Starting Value of the Market Measure | |
Interest Payments | None | |
Preliminary Offering Documents | ||
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 or 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. |
● | Your investment return is limited to the return represented by the Capped Value and may be less than a comparable investment directly in crude oil, as measured by the Market Measure. |
● | 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 not be entitled to any rights with respect to the Market Measure or any related futures contracts. |
● | The notes will not be regulated by the U.S. Commodity Futures Trading Commission. |
● | The price movements in the futures contract represented by the Market Measure may not correlate with changes in the spot price of crude oil. |