09/11/2025 | Press release | Distributed by Public on 09/11/2025 13:44
BofA Finance LLC
Fully and Unconditionally Guaranteed by Bank of America Corporation
Market Linked Securities
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Market Linked Securities-Auto-Callable with Contingent Downside
Principal at Risk Securities Linked to the Lowest Performing of the Nasdaq-100® Technology Sector Index, the Dow Jones Industrial Average® and the iShares® Russell 2000 Value ETF due September 28, 2029
Term Sheet to Preliminary Pricing Supplement dated September 11, 2025
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Issuer and Guarantor:
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BofA Finance LLC ("BofA Finance" or "Issuer") and Bank of America Corporation ("BAC" or the "Guarantor")
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Underlyings:
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The Nasdaq-100® Technology Sector Index, the Dow Jones Industrial Average® and the iShares® Russell 2000 Value ETF
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Pricing Date*:
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September 25, 2025
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Issue Date*:
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September 30, 2025
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Maturity Date*:
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September 28, 2029
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Denominations:
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$1,000 and any integral multiple of $1,000.
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Automatic Call:
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If the closing value of the Lowest Performing Underlying on any Call Date is greater than or equal to its Call Value, the Securities will be automatically called for the principal amount plus the Call Premium applicable to that Call Date.
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Call Dates* and Call Premiums:
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The Call Premium applicable to each Call Date will be a percentage of the principal amount that increases for each Call Date based on a simple (non-compounding) return of at least approximately 9.10% per annum (to be determined on the Pricing Date). See "Call Dates and Call Premiums" on page 2.
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Lowest Performing Underlying:
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The Lowest Performing Underlying on any Call Date is the Underlying with the lowest Performance Factor on that Call Date.
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Performance Factor:
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With respect to an Underlying on any Call Date, its closing value on such Call Date divided by its Starting Value (expressed as a percentage).
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Call Settlement Date:
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Three business days after the applicable Call Date.
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Maturity Payment Amount (per Security):
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If the Securities are not automatically called, you will receive a Maturity Payment Amount that could be equal to or less than the principal amount per Security:
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If the Ending Value of the Lowest Performing Underlying on the Final Calculation Day is less than its Call Value but greater than or equal to its Threshold Value: $1,000; or
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If the Ending Value of the Lowest Performing Underlying on the Final Calculation Day is less than its Threshold Value:
$1,000 × Performance Factor of the Lowest Performing Underlying on the Final Calculation Day
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Starting Value:
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For each Underlying, its closing value on the Pricing Date
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Ending Value:
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For each Underlying, its closing value on the Final Calculation Day
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Call Value:
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For each Underlying, 91% of its Starting Value.
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Threshold Value:
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For each Underlying, 70% of its Starting Value.
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Calculation Agent:
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BofA Securities, Inc. ("BofAS"), an affiliate of BofA Finance
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Underwriting Discount**:
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Up to 2.415% per Security; dealers, including those using the trade name Wells Fargo Advisors (WFA), may receive a selling concession of 1.84% per Security and WFA may receive a distribution expense fee of 0.075% per Security.
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CUSIP:
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09711M6Y3
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Material Tax Consequences:
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See the preliminary pricing supplement.
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*Subject to change.
** In addition, selected dealers may receive a fee of up to 0.30% per Security for marketing and other services.
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Call Date
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Call Premium†
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Call Date
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Call Premium†
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September 30, 2026
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At least 9.100% of the principal amount
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May 1, 2028
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At least 23.508% of the principal amount
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October 30, 2026
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At least 9.858% of the principal amount
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May 30, 2028
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At least 24.267% of the principal amount
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November 30, 2026
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At least 10.617% of the principal amount
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June 30, 2028
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At least 25.025% of the principal amount
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December 30, 2026
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At least 11.375% of the principal amount
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July 31, 2028
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At least 25.783% of the principal amount
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February 1, 2027
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At least 12.133% of the principal amount
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August 30, 2028
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At least 26.542% of the principal amount
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March 1, 2027
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At least 12.892% of the principal amount
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October 2, 2028
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At least 27.300% of the principal amount
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March 30, 2027
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At least 13.650% of the principal amount
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October 30, 2028
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At least 28.058% of the principal amount
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April 30, 2027
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At least 14.408% of the principal amount
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November 30, 2028
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At least 28.817% of the principal amount
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June 1, 2027
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At least 15.167% of the principal amount
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January 2, 2029
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At least 29.575%% of the principal amount
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June 30, 2027
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At least 15.925% of the principal amount
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January 30, 2029
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At least 30.333% of the principal amount
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July 30, 2027
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At least 16.683% of the principal amount
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February 28, 2029
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At least 31.092% of the principal amount
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August 30, 2027
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At least 17.442% of the principal amount
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April 2, 2029
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At least 31.850% of the principal amount
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September 30, 2027
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At least 18.200% of the principal amount
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April 30, 2029
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At least 32.608% of the principal amount
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November 1, 2027
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At least 18.958% of the principal amount
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May 30, 2029
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At least 33.367% of the principal amount
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November 30, 2027
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At least 19.717% of the principal amount
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July 2, 2029
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At least 34.125% of the principal amount
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December 30, 2027
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At least 20.475% of the principal amount
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July 30, 2029
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At least 34.883% of the principal amount
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January 31, 2028
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At least 21.233% of the principal amount
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August 30, 2029
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At least 35.642% of the principal amount
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February 29, 2028
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At least 21.992% of the principal amount
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September 25, 2029 (the "Final Calculation Day")
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At least 36.400% of the principal amount
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March 30, 2028
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At least 22.750% of the principal amount
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Your investment may result in a loss; there is no guaranteed return of principal.
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Any positive investment return on the Securities is limited.
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The Securities do not bear interest.
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The amount payable upon an automatic call or the Maturity Payment Amount, as applicable, will not reflect the values of the Underlyings other than on the Call Dates.
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The Securities are subject to a potential automatic call, which would limit your ability to receive further payment on the Securities.
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Because the Securities are linked to the lowest performing (and not the average performance) of the Underlyings, you may not receive any return on the Securities and may lose a significant portion or all of your principal amount even if the closing value of one Underlying is always greater than or equal to its Call Value or Threshold Value.
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Your return on the Securities may be less than the yield on a conventional debt security of comparable maturity.
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A Call Settlement Date and the Maturity Date may be postponed if a Call Date is postponed.
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Any payment on the Securities is subject to the credit risk of BofA Finance, as issuer, and BAC, as Guarantor, and actual or perceived changes in BofA Finance's or the Guarantor's creditworthiness are expected to affect the value of the Securities.
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We are a finance subsidiary and, as such, have no independent assets, operations or revenues.
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The public offering price you pay for the Securities will exceed their initial estimated value.
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The initial estimated value does not represent a minimum or maximum price at which BofA Finance, BAC, BofAS or any of our other affiliates or Wells Fargo Securities, LLC ("WFS") or its affiliates would be willing to purchase your Securities in any secondary market (if any exists) at any time.
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BofA Finance cannot assure you that a trading market for your Securities will ever develop or be maintained.
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The Securities are not designed to be short-term trading instruments, and if you attempt to sell the Securities prior to maturity, their market value, if any, will be affected by various factors that interrelate in complex ways, and their market value may be less than the principal amount.
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Trading and hedging activities by BofA Finance, the Guarantor and any of our other affiliates, including BofAS, and WFS and its affiliates, may create conflicts of interest with you and may affect your return on the Securities and their market value.
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There may be potential conflicts of interest involving the calculation agent, which is an affiliate of ours.
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Any payments on the Securities and whether the Securities are automatically called will depend upon the performance of the Underlyings, and therefore the Securities are subject to the following risks, each as discussed in more detail in the accompanying product supplement.
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Changes that affect the Indices may adversely affect the value of the Securities and any payments on the Securities.
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We cannot control actions by any of the unaffiliated companies whose securities are included any Index.
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We and our affiliates have no affiliation with any index sponsor and have not independently verified their public disclosure of information.
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Risks associated with the fund underlying index, or the underlying assets of the Fund, will affect the value of the Fund and hence the value of the Securities.
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Changes that affect the Fund or its fund underlying index may adversely affect the value of the Securities and any payments on the Securities.
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We cannot control actions by any of the unaffiliated companies whose securities are included in the Fund or its fund underlying index.
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We and our affiliates have no affiliation with the fund sponsor or fund underlying index sponsor and have not independently verified their public disclosure of information.
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There are risks associated with funds.
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The Securities are subject to risks associated with small-size capitalization companies.
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An investment in the Securities is subject to risks associated with investing in non-U.S. companies.
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Adverse conditions in the technology sector may reduce your return on the Securities.
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The stocks included in the NDXT are concentrated in one sector.
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The performance of the IWN may not correlate with the performance of its underlying index as well as the net asset value per share or unit of the IWN, especially during periods of market volatility.
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The U.S. federal income and estate tax consequences of the Securities are uncertain, and may be adverse to a holder of the Securities.
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