BofA Finance LLC filed a free writing prospectus on October 30, 2026, disclosing the term sheet for Market Linked Securities linked to an international equity index basket, with a scheduled maturity of February 3, 2028.

Key Highlights

  • Basket composition: Five international indices are weighted as follows: EURO STOXX 50 (40.00%), Nikkei 225 (25.00%), FTSE 100 (17.50%), Swiss Market Index (10.00%), and S&P/ASX 200 (7.50%).
  • Upside Participation Rate: 300%, capped at a Maximum Return of at least 19.25% of the principal amount per Security (at least $192.50 per Security).
  • Downside exposure: If the Ending Value is less than or equal to the Starting Value, investors receive $1,000 plus the product of $1,000 and the Basket Return, with possible loss of all principal.
  • Initial estimated value: Expected to be between $915.00 and $965.00 per Security, which, according to the filing, "is less than the public offering price."
  • Denominations: $1,000 and any integral multiple of $1,000; CUSIP 09712HZ62.
  • Pricing and issue dates: Pricing Date is November 30, 2026, and Issue Date is December 3, 2026, both subject to change.
  • Underwriting discount: Up to 2.325% per Security, with dealers including those using the Wells Fargo Advisors trade name potentially receiving a selling concession of 1.75% per Security.

BofA Finance International Basket Securities: Structure and Risk Profile

According to the filing, BofA Finance LLC, fully and unconditionally guaranteed by Bank of America Corporation, is offering principal-at-risk securities linked to an unequally weighted basket of five international equity indices. The securities are described as "Market Linked Securities - Leveraged Upside Participation to a Cap and 1-to-1 Downside Exposure." The Starting Value is set to 100.00 on the Pricing Date, and the Ending Value is the Basket Closing Value on the Calculation Day of January 31, 2028.

The filing discloses that on the upside, investors receive $1,000 plus the lesser of the leveraged Basket Return (at 300% participation) or the Maximum Return, which is at least 19.25% of principal. On the downside, investors participate in losses on a 1-to-1 basis with the Basket, and the filing states that investors "will lose some, and possibly all, of the principal amount" if the Ending Value is below the Starting Value. The securities do not bear interest, and any payment is subject to the credit risk of BofA Finance as issuer and Bank of America Corporation as guarantor.

The calculation agent is BofA Securities, Inc., an affiliate of BofA Finance. The filing notes potential conflicts of interest involving the calculation agent and discloses that trading and hedging activities by BofA Finance, Bank of America Corporation, and affiliates, as well as Wells Fargo Securities, LLC, "may create conflicts of interest" and "may adversely affect your return on the Securities and their market value." The filing also notes that the Securities are subject to exchange rate movements and factors affecting international securities markets.

What Was Disclosed

BofA Finance LLC filed a term sheet under Rule 433 for principal-at-risk market linked securities due February 3, 2028, tied to a five-index international basket, with a 300% upside participation rate capped at a Maximum Return of at least 19.25%, and full 1-to-1 downside exposure.