BofA Finance LLC filed a free writing prospectus on November 4, 2026, disclosing terms for Market Linked Securities that are auto-callable with contingent downside protection, linked to the lowest performing of the Dow Jones Industrial Average and the S&P 500 Index, with a maturity date of November 16, 2029.

Key Highlights

  • Issuer and guarantor: BofA Finance LLC is the issuer; Bank of America Corporation ("BAC") is the full and unconditional guarantor.
  • Pricing and maturity: The pricing date is expected to be November 13, 2026, with an issue date of November 18, 2026, and a maturity date of November 16, 2029.
  • Auto-call feature: The securities will be automatically called if the lowest performing underlying closes at or above its Starting Value on any Call Date, with an initial Call Premium of at least 8.500% of principal on November 18, 2027.
  • Threshold value: Each underlying's Threshold Value is set at 75% of its Starting Value; if the ending value falls below this level, investors may lose more than 25%, and possibly all, of principal.
  • Initial estimated value: The filing states the initial estimated value of the securities as of the pricing date is expected to be between $915.00 and $965.00 per security, which is less than the $1,000 public offering price.
  • Underwriting discount: Up to 2.575% per security; dealers may receive a selling concession of 2.00% per security, and Wells Fargo Advisors may receive a distribution expense fee of 0.075% per security.
  • CUSIP: 09712HHH8.

Terms and Risk Structure of BofA Finance's November 2026 Auto-Callable Securities

According to the filing, BofA Finance LLC is offering Market Linked Securities denominated in increments of $1,000, fully and unconditionally guaranteed by Bank of America Corporation. The securities are linked to the "lowest performing" of two underlyings: the Dow Jones Industrial Average and the S&P 500 Index. The filing specifies that the Lowest Performing Underlying on any given Call Date is determined by whichever index has the lower Performance Factor, calculated as the index's closing level on that date divided by its Starting Value.

The auto-call mechanism operates across 25 monthly Call Dates from November 18, 2027 through November 13, 2029. The filing discloses that Call Premiums accumulate based on "a simple (non-compounding) return of at least approximately 8.50% per annum," with the final Call Premium on November 13, 2029, set at "at least 25.500% of the principal amount." All premium percentages are described as subject to final determination on the Pricing Date. The filing notes that any positive return is limited to the applicable Call Premium, and investors "will not participate in any appreciation of any Underlying beyond any applicable Call Premium."

If the securities are not called and the Lowest Performing Underlying's ending value is at or above the Threshold Value (75% of Starting Value) but below Starting Value, the filing states investors receive $1,000 per security. If the ending value falls below the Threshold Value, the payout equals $1,000 multiplied by the Performance Factor of the Lowest Performing Underlying, meaning principal loss can be substantial. The filing also discloses that the securities do not bear interest, are not bank deposits, and are not insured by the FDIC or any governmental agency. Payments are subject to the credit risk of BofA Finance and BAC.

What Was Disclosed

BofA Finance LLC disclosed a term sheet for auto-callable, principal-at-risk securities linked to the DJIA and S&P 500, with a maturity of November 16, 2029, an estimated initial value of $915.00 to $965.00 per security, CUSIP 09712HHH8, and a contingent downside Threshold Value of 75% of Starting Value.