BofA Finance LLC filed a free writing prospectus on October 30, 2026, disclosing terms for Accelerated Return Notes linked to the SPDR S&P Biotech 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.
  • Principal amount: $10.00 per unit, with no interest payments.
  • Market measure: The SPDR S&P Biotech ETF (Bloomberg symbol: "XBI").
  • Upside exposure: 3-to-1 upside participation in increases in the market measure, subject to a capped value of $12.90 to $13.30 per unit, representing a 29.00% to 33.00% return over the principal amount.
  • Downside exposure: 1-to-1 downside exposure to decreases in the market measure, with 100% of principal at risk.
  • No exchange listing: The notes will not be listed on any exchange.
  • Term: Approximately 14 months; final terms to be set on the pricing date.

BofA Finance Accelerated Return Notes: Structure, Payoff, and Key Risks

According to the filing, BofA Finance LLC is offering Accelerated Return Notes (ARNs) linked to the SPDR S&P Biotech ETF under Registration No. 333-290665. The notes carry a principal amount of $10.00 per unit and an approximate term of 14 months. The filing states that holders receive 3-to-1 upside exposure to increases in the market measure at maturity, subject to a capped value ranging from $12.90 to $13.30 per unit, to be determined on the pricing date. The hypothetical return table in the filing illustrates that if the market measure rises 10.34% or more, the redemption amount per unit would equal the capped value of $13.10, representing a 31.00% total rate of return, based on the mid-point of the range.

On the downside, the filing discloses 1-to-1 exposure to declines in the market measure, with the full principal at risk. The hypothetical table shows that a 50.00% decline in the market measure would result in a $5.00 redemption amount per unit, and a 100.00% decline would result in a $0.00 redemption amount. The filing notes that payments on the notes are subject to the credit risk of both BofA Finance and Bank of America Corporation, and that if either becomes insolvent or unable to pay, 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 the public offering price, and that no secondary market liquidity is guaranteed. The notes carry no interest payments and will not be listed on any exchange. The filing states that investors "will have no rights of a holder of the Market Measure or the securities held by the Market Measure," and will not be entitled to receive dividends or other distributions. The biotechnology sector concentration of the underlying ETF is also identified as a specific risk factor.

What Was Disclosed

BofA Finance LLC filed a free writing prospectus describing Accelerated Return Notes linked to the SPDR S&P Biotech ETF, with a $10.00 per unit principal, approximately 14-month term, 3-to-1 upside (capped), 1-to-1 downside, no interest, and no exchange listing.