BofA Finance LLC filed a free writing prospectus on November 12, 2026, disclosing terms for Accelerated Return Notes linked to the iShares U.S. Aerospace & Defense ETF, with a principal amount of $10.00 per unit and an approximately 14-month term.

Key Highlights

  • Issuer and Guarantor: BofA Finance LLC is the issuer; Bank of America Corporation is the guarantor.
  • Market Measure: The notes are linked to the iShares U.S. Aerospace & Defense ETF (Bloomberg symbol: "ITA").
  • Principal Amount: $10.00 per unit, with a term of approximately 14 months.
  • Upside Cap: The Capped Value is in the range of $11.650 to $12.050 per unit, representing a 16.50% to 20.50% return over principal, to be set on the pricing date.
  • Payout Structure: 3-to-1 upside exposure to increases in the Market Measure, subject to the Capped Value, and 1-to-1 downside exposure to decreases, with 100% of principal at risk.
  • 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 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 an approximately 14-month term. At maturity, the redemption amount is determined by the performance of the Market Measure: investors receive 3-to-1 upside participation in gains, subject to the Capped Value, while losses are passed through on a 1-to-1 basis with no principal protection.

The filing states the Capped Value will be set on the pricing date within a range of $11.650 to $12.050 per unit. Based on a hypothetical scenario table included in the filing, a 6.17% gain in the Market Measure would produce a hypothetical redemption amount of $11.850 per unit and an 18.50% total return on the notes, illustrating how gains above that threshold are capped. The filing discloses that "the initial estimated value of the notes on the pricing date will be less than their public offering price" and that selling prior to maturity "may be lower than both the public offering price and the initial estimated value."

The filing identifies several risks, including credit risk of both BofA Finance and Bank of America Corporation, sector concentration risk in aerospace and defense, potential tracking differences between the ETF and its underlying index, and the absence of any rights to dividends or securities held by the Market Measure. The filing notes that "if BofA Finance and BAC become insolvent or are unable to pay their respective obligations, you may lose your entire investment." Final terms are to be set on the pricing date.

What Was Disclosed

BofA Finance LLC filed a free writing prospectus describing Accelerated Return Notes linked to the iShares U.S. Aerospace & Defense ETF, with a $10.00 principal per unit, an approximately 14-month term, 3-to-1 capped upside, full downside exposure, and no exchange listing or interest payments.