BofA Finance LLC set preliminary terms for $1,000 notes linked to the S&P 500 Futures index, with a 75.00% coupon barrier, 85.00% threshold and 90.00% call value. Investors face issuer and guarantor Credit risk, and Redemption can fall below principal, with losses of up to 85.00%.

Key Highlights

  • The notes have $1,000 minimum denominations and a $1,000 public offering price.
  • Contingent coupon payments equal $9.292 multiplied by the number of eligible payment dates that have occurred.
  • Redemption may be below principal when the ending value falls under the 85.00% threshold, exposing investors to losses of up to 85.00%.

The notes will have minimum denominations of $1,000, with a $1,000 public offering price and a potential Underwriting discount of $47.50 per note. Proceeds to BofA Finance could be as low as $952.50 per $1,000 before expenses.

Note Terms and Payment Mechanics

The call value is 90.00% of the underlying’s starting value, while the coupon barrier is 75.00% and the threshold value is 85.00%. When the underlying meets or exceeds the coupon barrier on a monthly observation date, the contingent coupon equals $9.292 multiplied by the number of contingent payment dates already reached. If the notes remain outstanding and the ending value meets the threshold, the Maturity payment is $1,000 per $1,000 of principal. A pricing date of October 27, 2026, an Issue Date of October 30, 2026, a valuation date of October 27, 2031, and a maturity date of October 30, 2031 are specified.

Credit Exposure and Downside Terms

If the ending value is below the threshold, redemption may be less than principal, and investors could lose up to 85.00% of their investment. The federal tax discussion addresses holders that will hold the Notes as Capital Assets under Section 1221.