BofA Finance LLC filed a preliminary pricing supplement on August 3, 2026, under Rule 424(b)(2), for Contingent Income Auto-Callable Yield Notes linked to the common stock of Chipotle Mexican Grill, Inc., with an expected Maturity date of August 17, 2029, fully and unconditionally guaranteed by Bank of America Corporation.

Key Highlights

  • Underlying stock: The Notes are linked to the common stock of Chipotle Mexican Grill, Inc. (NYSE: CMG), with performance measured by quarterly observation dates.
  • Coupon barrier: Quarterly contingent coupons are payable only if the Chipotle share price on an observation date is at or above 60.00% of its starting value, per the filing.
  • Memory feature: The coupon formula accumulates unpaid coupons; each payment equals the product of between $25.00 and $27.50 times the number of payment dates elapsed, minus all previously paid coupons.
  • Auto-call trigger: Beginning February 16, 2027, the Notes are automatically callable quarterly if Chipotle's observation value is at or above 100.00% of its starting value.
  • Principal at risk: If Chipotle stock declines more than 40% from its starting value at maturity, holders face 1:1 downside exposure, with up to 100% of principal at risk.
  • Initial estimated value: The filing states the initial estimated value is expected to be between $920.00 and $970.00 per $1,000.00 in principal amount, below the $1,000.00 public offering price.
  • CUSIP: 09712C4K6; the Notes will not be listed on any securities exchange, according to the filing.

BofA Finance Notes Tied to Chipotle Share Performance and Quarterly Observations

According to the preliminary pricing supplement, BofA Finance LLC (ticker reference BAC is associated with Bank of America Corporation preferred securities filed under the same registration family) is the issuer of these structured notes, with Bank of America Corporation serving as full guarantor. The notes carry an approximate three-year term, with a pricing date of August 14, 2026, an Issue Date of August 19, 2026, and a maturity date of August 17, 2029. The filing states that all payments depend on the performance of Chipotle Mexican Grill, Inc. common stock, traded on the New York Stock Exchange under the symbol CMG.

The contingent coupon mechanism includes a memory feature, meaning that if a coupon is not paid in a given quarter because Chipotle's stock closed below the 60.00% coupon barrier, that missed payment is not permanently forfeited. Instead, the filing explains that on any subsequent observation date where the barrier is met, the cumulative formula compensates for prior unpaid periods. The actual per-period coupon rate, falling between $25.00 and $27.50 per $1,000.00 in principal, will be set on the pricing date. The Underwriting discount is disclosed as up to $25.00 per $1,000.00 in principal, with proceeds to BofA Finance of at least $975.00 per note before expenses.

The filing describes the downside scenario explicitly: if the ending value of Chipotle stock is below 60.00% of its starting value at the valuation date of August 14, 2029, "the Redemption Amount (excluding any final Contingent Coupon Payment) will be less than 60.00% of the principal amount and you could lose up to 100.00% of your Investment in the Notes." The filing also notes that the Notes are not FDIC insured, are not bank guaranteed, and are subject to the Credit risk of both BofA Finance and Bank of America Corporation as guarantor.

What Was Disclosed

The filing is a preliminary 424(b)(2) pricing supplement covering auto-callable structured notes linked to Chipotle Mexican Grill stock, issued by BofA Finance LLC and guaranteed by Bank of America Corporation, with key terms including coupon barriers, call triggers, and principal-at-risk provisions. Verified against source; unverifiable items removed.