BofA Finance LLC filed a free writing prospectus on November 12, 2026, disclosing terms for Market Linked Securities auto-callable with leveraged upside participation and contingent downside, principal at risk, linked to the iShares MSCI Brazil ETF and due November 17, 2031.

Key Highlights

  • Underlying asset: The iShares MSCI Brazil ETF (Bloomberg symbol: EWZ), with a pricing date of November 12, 2026, and an issue date of November 17, 2026.
  • Auto-call feature: If the fund closing price on the Call Date of November 17, 2027, is at or above the Starting Price, securities are automatically called at principal plus a Call Premium of at least 20.00%.
  • Upside participation: If not called and the Ending Price is at or above the Starting Price, holders receive $1,000 plus $1,000 multiplied by the Underlying Return multiplied by an Upside Participation Rate of 175%.
  • Downside threshold: The Threshold Price is set at 75% of the Starting Price; if the Ending Price falls below the Threshold Price, holders bear full downside loss dollar-for-dollar, and the filing states investors could lose "more than 25%, and possibly all," of principal.
  • Initial estimated value: Expected to be between $910.00 and $960.00 per Security as of the Pricing Date, which is less than the $1,000 public offering price per Security.
  • Underwriting discount: Up to 2.825% per Security; dealers using the Wells Fargo Advisors trade name may receive a selling concession of 2.00% per Security, and WFA may receive a distribution expense fee of 0.075% per Security.
  • CUSIP: 09712HC42; issuer is BofA Finance LLC, fully and unconditionally guaranteed by Bank of America Corporation (NYSE:BAC).

Terms and Risk Profile of BofA Finance's EWZ-Linked Auto-Callable Securities

According to the filing, BofA Finance LLC is the issuer of these Market Linked Securities, with Bank of America Corporation serving as full and unconditional guarantor. The securities are denominated in $1,000 increments and are linked to the fund closing price of the iShares MSCI Brazil ETF (EWZ). The Final Calculation Day is November 12, 2031, with a Maturity Date of November 17, 2031, subject to change.

The filing describes a structured payout with three possible outcomes at maturity if the securities are not automatically called. If the Ending Price equals or exceeds the Starting Price, investors receive leveraged gains at a 175% Upside Participation Rate. If the Ending Price falls below the Starting Price but remains at or above the Threshold Price of 75% of the Starting Price, investors receive the full $1,000 principal. If the Ending Price falls below the Threshold Price, investors are exposed to the full percentage decline of EWZ applied to their principal with no floor, meaning the filing warns that investors could lose "more than 25%, and possibly all," of the principal amount.

The filing identifies several risk considerations, including that the securities do not bear interest, that any automatic call would cap positive returns at the Call Premium regardless of subsequent ETF appreciation, and that any payment is subject to the credit risk of BofA Finance as issuer and Bank of America Corporation as guarantor. The filing also notes that BofA Finance "is a finance subsidiary and, as such, has no independent assets, operations or revenues." The calculation agent is BofA Securities, Inc., an affiliate of BofA Finance, which the filing flags as a potential conflict of interest. Additional risks cited include foreign currency exchange rate exposure, risks associated with emerging markets, and uncertainty around U.S. federal income and estate tax consequences.

What Was Disclosed

BofA Finance LLC filed a free writing prospectus setting out the full term sheet for auto-callable, principal-at-risk securities linked to EWZ, maturing November 17, 2031, with a 175% upside participation rate, a 75% downside threshold, and an initial estimated value of $910.00 to $960.00 per $1,000 Security.