BofA Finance LLC filed a free writing prospectus on November 2, 2026, disclosing the term sheet for Market Linked Securities auto-callable with fixed percentage buffered downside linked to the Russell 2000 Index, with a stated maturity date of November 29, 2030.

Key Highlights

  • Issuer and guarantor: BofA Finance LLC is the issuer; Bank of America Corporation provides a full and unconditional guarantee.
  • Underlying index: The securities are linked to the Russell 2000 Index, with a pricing date of November 24, 2026, and an issue date of November 30, 2026.
  • Auto-call premiums: Call premiums are at least 10.00% (Year 1), 20.00% (Year 2), 30.00% (Year 3), and 40.00% (Year 4) of principal, to be finalized on the pricing date.
  • Buffer threshold: The threshold value is 90% of the starting value; losses below that level are borne in full by the investor.
  • Initial estimated value: The filing states the initial estimated value is expected to be between $915.00 and $965.00 per $1,000 security, which is less than the public offering price.
  • Underwriting discount: Up to 2.575% per security; dealers may receive a selling concession of 2.00%, and Wells Fargo Advisors may receive a distribution expense fee of 0.075% per security.
  • No interest payments: According to the filing, "the Securities do not bear interest."

Terms and Structure of BofA Finance's Russell 2000-Linked Auto-Callable Securities

According to the filing, BofA Finance LLC is offering Market Linked Securities in denominations of $1,000 and any integral multiple of $1,000, under Registration Statement Nos. 333-290665 and 333-290665-01. The securities are fully and unconditionally guaranteed by Bank of America Corporation. The CUSIP assigned to this offering is 09712H3R1. The term sheet is accompanied by a Preliminary Pricing Supplement dated November 2, 2026, along with Product Supplement No. WF-1 dated December 8, 2025, and a Prospectus Supplement and Prospectus each dated December 8, 2025.

The filing describes an automatic call feature: if the closing level of the Russell 2000 Index on any call date equals or exceeds the starting value (the closing level on the pricing date), the securities are called and investors receive principal plus the applicable call premium. Call dates are scheduled annually from November 30, 2027 through November 25, 2030. If the securities are not called and the ending value on the final calculation day falls below the 90% threshold value, the filing states investors "will receive less, and possibly 90.00% less, than the principal amount" at maturity. Any positive return is capped at the applicable call premium, and investors do not participate in appreciation of the underlying beyond that amount.

The filing identifies BofA Securities, Inc., an affiliate of BofA Finance, as the calculation agent, and notes that this relationship "may create conflicts of interest." The filing further discloses that the public offering price exceeds the initial estimated value of between $915.00 and $965.00 per security, and that the initial estimated value does not represent a minimum or maximum secondary market price. Selected dealers may also receive a fee of up to 0.20% per security for marketing and other services, in addition to the underwriting discount.

What Was Disclosed

BofA Finance LLC filed a free writing prospectus term sheet for auto-callable, principal-at-risk securities linked to the Russell 2000 Index, maturing November 29, 2030, with annual call dates, a 10%-40% call premium range, a 90% downside buffer threshold, and an initial estimated value below the $1,000 offering price.