BofA Finance LLC is preparing auto-callable enhanced return notes linked to the S&P 500 Index, with a 125.00% upside participation rate and $1,000.00 denominations. Investors face automatic-call conditions, Credit exposure to BofA Finance and Bank of America Corporation, and potential losses of up to 100.00% of their investment.

Key Highlights

  • BofA Finance sets the Underwriting discount as high as $23.50 per $1,000 in principal amount.
  • The Redemption amount can fall below 75.00% of principal, with potential losses reaching 100.00%.
  • Minimum denomination is $1,000, with whole multiples of $1,000, and the public offering price is $1,000 per note.

Note Terms Set for S&P 500-Linked Offering

They will be sold in minimum denominations of $1,000 and whole multiples of $1,000, with a public offering price of $1,000 per note. The underwriting discount may reach $23.50 per $1,000, leaving proceeds to BofA Finance of $976.50 per note before expenses. Investors in certain fee-based advisory accounts may pay as little as $976.50 per $1,000 in principal amount. The S&P 500 Index is the underlying price return index.

Automatic Calls and Principal-Loss Exposure

The call value and redemption barrier are each set at 100.00% of the starting value. If the notes remain outstanding until maturity, an ending value at or above the redemption barrier results in a $1,000 payment per $1,000 of principal. An ending value below the threshold value of 75.00% can produce a redemption amount below 75.00% of principal and losses of up to 100.00%. Payments remain subject to the credit risk of BofA Finance and Bank of America Corporation (NYSE: BAC).