BofA Finance LLC filed a free writing prospectus on November 9, 2026, disclosing preliminary terms for Accelerated Return Notes linked to the iShares U.S. Aerospace & Defense ETF, with final terms to be set on the pricing date.

Key Highlights

  • Issuer and guarantor: BofA Finance LLC is the issuer; Bank of America Corporation is the guarantor.
  • Principal amount: $10.00 per unit, with a term of approximately 14 months.
  • Market measure: iShares U.S. Aerospace & Defense ETF (Bloomberg symbol: "ITA").
  • Payout structure: 3-to-1 upside exposure to increases in the Market Measure, subject to the Capped Value; 1-to-1 downside exposure with 100% of principal at risk.
  • Capped Value range: $11.650 to $12.050 per unit, representing a 16.50% to 20.50% return over the principal amount, to be determined on the pricing date.
  • No interest payments: The notes pay no periodic interest.
  • No exchange listing: The notes will not be listed on any exchange.

Terms and Risk Profile of the BofA Finance Aerospace and Defense ARNs

According to the filing, BofA Finance LLC is offering Accelerated Return Notes linked to the iShares U.S. Aerospace & Defense ETF under Registration No. 333-290665. The notes carry a principal amount of $10.00 per unit and a term of approximately 14 months. The filing states that final terms, including the exact Capped Value within the range of $11.650 to $12.050 per unit, will be determined on the pricing date. No interest payments are made during the term.

The filing describes a 3-to-1 upside participation rate, meaning returns above the starting value are tripled up to the Capped Value. The hypothetical return table in the filing illustrates that a 6.17% gain in the Market Measure would produce an 18.50% return on the notes, equal to the maximum at the Capped Value midpoint of $11.850 per unit. Any ETF gain beyond approximately 6.17% would still be capped at that level, the filing indicates. On the downside, losses in the Market Measure translate one-for-one into losses on the notes, and the filing states explicitly that "100% of your principal at risk."

The filing identifies several risk factors. It notes that "payments on the notes are subject to the credit risk of BofA Finance and the credit risk of BAC," and that if either entity becomes insolvent, investors "may lose your entire investment." The filing further discloses that "the initial estimated value of the notes on the pricing date will be less than their public offering price," and that secondary market sales prior to maturity may yield values below both the offering price and the initial estimated value. The filing also warns that because all securities held by the Market Measure are concentrated in one sector, adverse conditions in aerospace and defense may reduce returns.

What Was Disclosed

BofA Finance LLC filed preliminary terms for Accelerated Return Notes linked to the iShares U.S. Aerospace & Defense ETF, with a $10.00 per unit principal, approximately 14-month term, 3-to-1 capped upside, and full principal at risk on the downside. Final terms are set on the pricing date.