BofA Finance LLC filed a free writing prospectus on October 28, 2026, disclosing the term sheet for Market Linked Securities auto-callable with contingent coupon and contingent downside, linked to the lowest performing of three underlyings and maturing February 22, 2030.

Key Highlights

  • Three underlyings: The securities are linked to the S&P 500 Index, the Russell 2000 Index, and the iShares Expanded Tech-Software Sector ETF, with payouts determined by the lowest performing of the three.
  • Contingent coupon rate: At least 10.40% per annum, to be determined on the Pricing Date of November 16, 2026, paid monthly per Security as ($1,000 x Contingent Coupon Rate) / 12.
  • Coupon Barrier and Threshold Value: The Coupon Barrier is 65% of each underlying's Starting Value; the Threshold Value for principal protection at maturity is 60% of each underlying's Starting Value.
  • Initial estimated value: Expected to be between $915.00 and $965.00 per Security as of the pricing date, which the filing states is less than the public offering price.
  • Automatic call feature: Securities may be called monthly from May 2027 through January 2030 if the lowest performing underlying closes at or above its Starting Value on a Calculation Day.
  • Underwriting discount: Up to 2.325%, with dealers including those using the Wells Fargo Advisors trade name potentially receiving a selling concession of 1.75%, and WFA potentially receiving a distribution expense fee of 0.075%.
  • Principal at risk: If not called and the lowest performing underlying's Ending Value is below its Threshold Value at maturity, the filing states investors "will lose more than 40%, and possibly all, of the principal amount."

BofA Finance LLC Term Sheet Details for Lowest Performing Underlying-Linked Notes

According to the filing, BofA Finance LLC is the issuer of these Market Linked Securities, fully and unconditionally guaranteed by Bank of America Corporation. The securities are registered under Registration Statement Nos. 333-290665 and 333-290665-01 and carry CUSIP 09712HWK4. The Issue Date is expected to be November 19, 2026, with a Maturity Date of February 22, 2030, subject to change. Denominations are $1,000 and any integral multiple of $1,000.

The filing discloses that Contingent Coupon Payments are made monthly on the third business day following each Calculation Day, but only if the closing value of the Lowest Performing Underlying on the related Calculation Day is greater than or equal to its Coupon Barrier, set at 65% of each underlying's Starting Value. Calculation Days occur monthly on the 16th of each month, commencing December 2026 and ending January 2030, with a Final Calculation Day of February 19, 2030. At maturity, if the Ending Value of the Lowest Performing Underlying is at or above its Threshold Value of 60% of Starting Value, investors receive $1,000 per Security; if below, the payment equals $1,000 multiplied by the Performance Factor of the Lowest Performing Underlying, exposing investors to full downside below that level.

The filing identifies BofA Securities, Inc., an affiliate of BofA Finance, as the Calculation Agent, and notes potential conflicts of interest. The filing states the filing is a term sheet to a preliminary pricing supplement dated October 28, 2026, and directs prospective investors to review "Selected Risk Considerations" beginning on page PS-9 of the accompanying preliminary pricing supplement before making any investment decision. Selected dealers may also receive a fee of up to 0.30% for marketing and other services, according to the filing.

What Was Disclosed

BofA Finance LLC disclosed a term sheet for auto-callable, principal-at-risk securities linked to three underlyings, with a contingent coupon of at least 10.40% per annum, an initial estimated value of $915.00 to $965.00 per Security, a Pricing Date of November 16, 2026, and a Maturity Date of February 22, 2030.