BofA Finance LLC filed a free writing prospectus on November 6, 2026, disclosing terms for Market Linked Securities auto-callable with leveraged upside participation and contingent downside, linked to an international equity index basket and due November 15, 2029.

Key Highlights

  • Five-index basket: The securities are linked to a basket comprising the EURO STOXX 50 (40.00%), Nikkei 225 (25.00%), FTSE 100 (17.50%), Swiss Market Index (10.00%), and S&P/ASX 200 (7.50%).
  • Automatic call feature: If the Basket Closing Value on November 17, 2027 is at or above the Starting Value of 100.00, the securities will be called at principal plus a Call Premium of at least 12.55%.
  • Upside participation rate: If not called and the Ending Value exceeds the Starting Value, holders receive $1,000 plus the Basket Return multiplied by 125%.
  • Contingent downside protection: The Threshold Value is 75.00 (75% of the Starting Value); if the Ending Value falls below that level, holders lose principal on a 1-to-1 basis with the Basket Return.
  • Initial estimated value: The initial estimated value of the securities as of the pricing date is expected to be between $915.00 and $965.00 per Security, below the public offering price.
  • Underwriting discount: Up to 2.575% per Security, with dealers potentially receiving a selling concession of 2.00% per Security and Wells Fargo Advisors a distribution expense fee of 0.075% per Security.
  • Pricing and issue dates: The Pricing Date is November 12, 2026, and the Issue Date is November 17, 2026, both subject to change.

Terms and Structure of BofA Finance's International Index Basket Securities

According to the filing, BofA Finance LLC is the issuer and Bank of America Corporation is the full and unconditional guarantor of these principal-at-risk securities, which are registered under Registration Statement Nos. 333-290665 and 333-290665-01. The securities are denominated in units of $1,000 and any integral multiple thereof, with a CUSIP of 09712HK68. BofA Securities, Inc., an affiliate of BofA Finance, will serve as calculation agent.

The filing describes an automatic call mechanism: if the Basket Closing Value on the Call Date of November 17, 2027 is greater than or equal to the Starting Value, the securities are redeemed early at principal plus the Call Premium of at least 12.55%, to be set on the Pricing Date. The filing cautions that if the securities are automatically called, "your return will be limited to the Call Premium," regardless of how much the basket may have appreciated beyond the Starting Value. If not called, the Final Calculation Day is November 12, 2029.

The filing states that if the Ending Value is less than the Threshold Value of 75.00, holders "will lose more than 25%, and possibly all, of the principal amount." The securities do not bear interest, and the filing notes the public offering price exceeds the initial estimated value. The filing also discloses that selected dealers may receive an additional fee of up to 0.30% per Security for marketing and other services.

What Was Disclosed

BofA Finance LLC disclosed a term sheet for auto-callable market linked securities tied to a five-index international basket, with a potential one-year call, 125% upside participation, a 75% downside threshold, and a maturity of November 15, 2029. The initial estimated value is between $915.00 and $965.00 per Security.