BofA Finance LLC filed a free writing prospectus on November 4, 2026, disclosing preliminary terms for Accelerated Return Notes linked to an equally weighted basket of five technology-related stocks, with an approximately 14-month term and a capped upside return.

Key Highlights

  • Issuer and guarantor: BofA Finance LLC is the issuer; Bank of America Corporation is the guarantor.
  • Original offering price: $10.00 per unit, with a term of approximately 14 months.
  • Basket composition: An equally weighted basket of NVDA, AVGO, AMD, MU, and ANET common stocks.
  • Upside cap: The Capped Value is set at $12.90 to $13.30 per unit, representing a 29.00% to 33.00% return over the original offering price, to be finalized on the pricing date.
  • Payout structure: 3-to-1 upside exposure to basket increases, subject to the Capped Value; 1-to-1 downside exposure 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.

Preliminary Terms of BofA Finance's Technology-Basket Accelerated Return Notes

According to the filing, BofA Finance LLC is offering Accelerated Return Notes (ARNs) linked to a basket of five technology-related stocks: NVIDIA Corporation (NVDA), Broadcom Inc. (AVGO), Advanced Micro Devices, Inc. (AMD), Micron Technology, Inc. (MU), and Arista Networks, Inc. (ANET), each listed on the Nasdaq Global Select Market. The basket is equally weighted among all five components. The notes carry an original offering price of $10.00 per unit and an approximate term of 14 months. Final terms, including the precise Capped Value within the stated range, will be set on the pricing date.

The filing describes the payout profile at maturity as providing 3-to-1 upside exposure to increases in the basket, subject to the Capped Value of $12.90 to $13.30 per unit, alongside 1-to-1 downside exposure to decreases, with 100% of principal at risk. The hypothetical return table included in the filing illustrates that a basket gain of approximately 10.34% would reach the capped redemption amount of $13.10 per unit (used as the midpoint illustration), yielding a total hypothetical return of 31.00%, while a basket decline of 50.00% would result in a redemption amount of $5.00 per unit.

The filing identifies several risk factors. Payments on the notes are subject to the credit risk of both BofA Finance and Bank of America Corporation. The filing states that "if BofA Finance and BAC become insolvent or are unable to pay their respective obligations, you may lose your entire investment." Additionally, the filing notes that the initial estimated value on the pricing date will be less than the public offering price, and that selling the notes prior to maturity may result in a market value lower than both the public offering price and the initial estimated value. Holders will have no rights as stockholders of the basket companies and will not receive dividends.

What Was Disclosed

BofA Finance LLC disclosed preliminary terms for structured Accelerated Return Notes tied to a five-stock technology basket, including a $10.00 offering price, an approximately 14-month term, a 3-to-1 upside multiplier capped between $12.90 and $13.30 per unit, and full principal risk on the downside.