BofA Finance is offering auto-callable Yield notes with a $47.50 Underwriting discount per $1,000.00 of principal, linked to an index tied to S&P 500 futures. Investors receive contingent income only when the coupon barrier is met, while the notes carry issuer and guarantor Credit risk and can lose up to 85.00%.
Key Highlights
- The notes use a 70.00% coupon barrier based on the underlying’s starting value.
- Automatic Redemption is tied to a call value equal to 100.00% of the starting value.
- Eligible fee-based advisory accounts may pay as little as $952.50 per $1,000 of principal.
BofA Finance LLC is setting preliminary terms for contingent-income buffered auto-callable yield notes, with a $47.50 underwriting discount on each $1,000 of principal.
Note Pricing and Scheduled Dates
The public offering price is $1,000 per note, while proceeds before expenses to BofA Finance are $952.50 per note. Pricing is scheduled for October 27, 2026, with issuance set for October 30, 2026. The valuation date is October 27, 2031, and the Maturity date is October 30, 2031, subject to postponement under the stated terms. The notes may mature earlier if automatically called.
Conditional Income and Principal Risk
A contingent coupon payment is available on each monthly observation date when the underlying meets the coupon barrier. If the notes remain outstanding through maturity and the ending value meets the threshold value, the holder receives $1,000. If that condition is not met, the redemption amount is below principal, and investors could lose up to 85.00% of their investment. All payments depend on the creditworthiness of BofA Finance and Bank of America Corporation (NYSE: BAC).
FAQs
Q: How much is the underwriting discount on BofA Finance auto-callable notes?
A: The underwriting discount is $47.50 per $1,000 in principal. BofA Finance’s proceeds before expenses are $952.50 per note.
Q: Are BofA Finance auto-callable notes FDIC insured?
A: No. The notes are not FDIC insured and are not bank guaranteed, while payments remain subject to the credit risk of BofA Finance and Bank of America Corporation.
Q: How are BofA Finance notes treated for U.S. federal income tax?
A: The notes will be treated as though Bank of America Corporation issued them. The summary covers holders treating the notes as capital assets under Section 1221.
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