On October 20, 2026, BofA Finance LLC filed a free writing prospectus describing callable Market Linked Securities that carry a contingent coupon. The securities mature on January 27, 2031, and are linked to the performance of the S&P 500, Russell 2000, and Nasdaq-100 indexes.
Key Terms
- Issuer and guarantor: BofA Finance LLC is the issuer, and Bank of America Corporation provides a full and unconditional guarantee.
- Contingent coupon rate: The rate is at least 10.45% annually as of the October 22, 2026 pricing date. Payments are made quarterly only if the lowest-performing underlying closes at or above its coupon barrier on every eligible trading day during the applicable observation period.
- Coupon barrier and threshold value: The coupon barrier equals 70% of each underlying’s starting value, while the threshold value is set at 60%.
- Principal-at-risk feature: If the lowest-performing underlying finishes below its threshold value and the securities are not called, investors could lose more than 40% and potentially all of their principal at maturity.
- Initial estimated value: The securities are expected to have an initial value of between $925.00 and $975.00 per security as of the pricing date, below the $1,000 public offering price.
- Optional redemption: BofA Finance may redeem the securities in full on any quarterly optional redemption date from January 2027 through October 2030.
- Underwriting and distribution costs: The underwriting discount may be as high as 1.525% per security. Dealers may receive a selling concession of 1.25% per security, while Wells Fargo Advisors may receive a distribution expense fee of 0.075% per security.
Structure and Payment Terms
The securities are issued in $1,000 increments and reference the S&P 500 Index under the Bloomberg ticker SPX, the Russell 2000 Index under RTY, and the Nasdaq-100 Index under NDX. The pricing date is October 22, 2026, with an issue date of October 27, 2026, and a maturity date of January 27, 2031. The issue and maturity dates remain subject to change.
Each quarterly contingent coupon payment is calculated as $1,000 multiplied by the contingent coupon rate and divided by four. Payments are made only when the lowest-performing underlying’s closing level is at or above its coupon barrier on every eligible trading day during the relevant observation period. Observation period end dates fall on January 22, April 22, July 22, and October 22, beginning in January 2027 and concluding with the final calculation day on January 22, 2031.
The prospectus warns that investors may receive no contingent coupon payments and that any return on the securities may be limited to the coupon payments received, if any.
If the securities remain outstanding until maturity, the maturity payment will be $1,000 when the lowest-performing underlying’s ending value is at or above its threshold value. If the ending value is below the threshold, the payment will equal $1,000 multiplied by that underlying’s performance factor, creating the potential for a complete loss of principal. The filing also cautions that the public offering price will exceed the securities’ initial estimated value and that BofA Finance cannot assure investors that a secondary trading market will develop or remain active. The offering is identified by CUSIP 09712CNE9.
Disclosure Overview
The free writing prospectus outlines a callable, principal-at-risk, contingent-coupon offering linked to three major equity indexes. The securities mature on January 27, 2031, carry a contingent coupon rate of at least 10.45% annually, and have an initial estimated value of $925.00 to $975.00 per security.
