BofA Finance is offering auto-callable Yield notes in minimum denominations of $1,000.00, linked to the S&P 500 Futures 40% Volatility Compass TCA 6% Decrement index ER. Investors face contingent payments, early Redemption terms and potential losses of up to 85.00% of their investment.

Key Highlights

  • The Underwriting discount may reach $47.50 per $1,000 principal amount, leaving BofA Finance proceeds as low as $952.50.
  • A contingent coupon equals $10.417 multiplied by the number of qualifying contingent payment dates.
  • Bank of America Corporation fully and unconditionally guarantees the notes, while payments remain subject to issuer and guarantor Credit risk.

The pricing date is October 27, 2026, and the Issue Date is October 30, 2026. The stated Maturity date is October 30, 2031, subject to earlier automatic redemption. The call value is 100.00% of the underlying’s starting value, while the coupon barrier is 75.00% and the threshold value is 85.00%.

How the Note Payments Are Determined

A contingent payment can be made when the underlying’s observation value reaches or exceeds the coupon barrier on a monthly observation date. At maturity, an ending value at or above the threshold value results in a cash payment of $1,000 per $1,000 principal amount. If the ending value is below that threshold, the redemption amount is less than principal, and investors could lose up to 85.00% of their investment. A final contingent payment can also be included when the ending value reaches or exceeds the coupon barrier. The notes are not FDIC insured and may lose value. BofA Finance states that payments depend on the creditworthiness of both BofA Finance and Bank of America Corporation (NYSE: BAC).