[FWP] Bank of America Corporation Free Writing Prospectus
Bank of America has announced Contingent Income Auto-Callable Yield Notes linked to the performance of three major indices: the Nasdaq-100 Technology Sector Index, Russell 2000 Index, and S&P 500 Index. The notes offer:
Key Features:
- Monthly contingent coupon payments of $8.542 per $1,000 (10.25% per annum) if all underlying indices are above their coupon barriers
- 3-year term with automatic monthly call feature starting December 30, 2025
- Coupon and Threshold Barrier set at 70% of starting value for each index
- Initial estimated value range: $915.70-$965.70 per note
Risk Considerations: No guaranteed principal protection, limited returns to coupon payments, subject to automatic call feature, and exposure to the worst-performing underlying index. Investment subject to BofA Finance's credit risk with BAC as guarantor.
Bank of America ha annunciato le Contingent Income Auto-Callable Yield Notes collegate alla performance di tre importanti indici: Nasdaq-100 Technology Sector Index, Russell 2000 Index e S&P 500 Index. Le note offrono:
Caratteristiche principali:
- Pagamenti mensili di cedola condizionata di 8,542$ ogni 1.000$ (10,25% annuo) se tutti gli indici sottostanti sono superiori alle rispettive barriere di cedola
- Durata di 3 anni con opzione di richiamo automatico mensile a partire dal 30 dicembre 2025
- Cedola e barriera soglia fissate al 70% del valore iniziale per ciascun indice
- Valore stimato iniziale compreso tra 915,70$ e 965,70$ per nota
Considerazioni sul rischio: Nessuna protezione garantita del capitale, rendimenti limitati ai pagamenti della cedola, soggetti a richiamo automatico e esposizione all'indice sottostante con la performance peggiore. L'investimento è soggetto al rischio di credito di BofA Finance con BAC come garante.
Bank of America ha anunciado Notas de Rendimiento Auto-Callable con Ingreso Contingente vinculadas al desempeño de tres índices principales: Nasdaq-100 Technology Sector Index, Russell 2000 Index y S&P 500 Index. Las notas ofrecen:
Características clave:
- Pagos mensuales de cupón contingente de $8.542 por cada $1,000 (10.25% anual) si todos los índices subyacentes están por encima de sus barreras de cupón
- Plazo de 3 años con opción de llamada automática mensual a partir del 30 de diciembre de 2025
- Cupón y barrera umbral establecidos en 70% del valor inicial para cada índice
- Rango estimado de valor inicial: $915.70-$965.70 por nota
Consideraciones de riesgo: No hay protección garantizada del capital, retornos limitados a los pagos de cupón, sujetos a la opción de llamada automática y exposición al índice subyacente con peor desempeño. La inversión está sujeta al riesgo crediticio de BofA Finance con BAC como garante.
Bank of America는 나스닥-100 기술 섹터 지수, 러셀 2000 지수, S&P 500 지수 등 세 가지 주요 지수의 성과에 연동된 조건부 수익 자동 콜 가능 수익 노트를 발표했습니다. 해당 노트는 다음과 같은 특징을 갖고 있습니다:
주요 특징:
- 모든 기초 지수가 쿠폰 장벽 이상일 경우, 매월 1,000달러당 8.542달러의 조건부 쿠폰 지급 (연 10.25%)
- 3년 만기, 2025년 12월 30일부터 매월 자동 콜 기능 적용
- 각 지수의 시작 가치 대비 70%로 설정된 쿠폰 및 임계 장벽
- 초기 예상 가치 범위: 노트당 915.70달러~965.70달러
위험 고려사항: 원금 보장 없음, 쿠폰 지급에 한정된 수익, 자동 콜 기능 적용, 최저 성과 지수에 대한 노출. 투자 시 BofA Finance의 신용 위험이 있으며 BAC가 보증인입니다.
Bank of America a annoncé des Notes à Rendement Auto-Rappelables à Revenu Conditionnel liées à la performance de trois indices majeurs : l'indice Nasdaq-100 Technology Sector, l'indice Russell 2000 et l'indice S&P 500. Ces notes offrent :
Caractéristiques principales :
- Paiements mensuels de coupon conditionnels de 8,542 $ pour 1 000 $ (10,25 % par an) si tous les indices sous-jacents sont au-dessus de leurs barrières de coupon
- Durée de 3 ans avec option de rappel automatique mensuel à partir du 30 décembre 2025
- Coupon et barrière seuil fixés à 70 % de la valeur initiale pour chaque indice
- Valeur estimée initiale comprise entre 915,70 $ et 965,70 $ par note
Considérations sur les risques : Pas de protection garantie du capital, rendements limités aux paiements de coupon, soumis à l'option de rappel automatique et exposés à l'indice sous-jacent le moins performant. L'investissement est soumis au risque de crédit de BofA Finance avec BAC en tant que garant.
Bank of America hat Contingent Income Auto-Callable Yield Notes angekündigt, die an die Performance von drei wichtigen Indizes gebunden sind: Nasdaq-100 Technology Sector Index, Russell 2000 Index und S&P 500 Index. Die Notes bieten:
Hauptmerkmale:
- Monatliche bedingte Kuponzahlungen von 8,542 $ pro 1.000 $ (10,25 % p.a.), sofern alle zugrunde liegenden Indizes über ihren Kupon-Barrieren liegen
- Laufzeit von 3 Jahren mit automatischer monatlicher Rückrufoption ab dem 30. Dezember 2025
- Kupon- und Schwellenbarriere bei 70% des Startwerts für jeden Index
- Geschätzter Anfangswertbereich: 915,70 $ bis 965,70 $ pro Note
Risikohinweise: Keine garantierte Kapitalrückzahlung, begrenzte Renditen auf Kuponzahlungen, unterliegen der automatischen Rückrufoption und der Exponierung gegenüber dem schlechtesten zugrunde liegenden Index. Die Investition unterliegt dem Kreditrisiko von BofA Finance mit BAC als Garantiegeber.
- Attractive potential yield of 10.25% per annum through monthly contingent coupon payments of $8.542 per $1,000 principal
- Built-in downside protection with 30% buffer before principal is at risk (70% threshold value)
- Monthly autocall opportunity starting December 2025 at 100% of starting value, providing early exit potential
- Principal is at risk with potential for significant losses if any underlying falls below 70% threshold
- Returns are capped at the contingent coupon payments with no participation in underlying appreciation
- Complex structure tied to worst-performing of three diverse indices (Tech sector, Small Cap, Large Cap) increases risk
- Initial estimated value ($915.70-$965.70) is significantly below the public offering price, indicating high embedded costs
Bank of America ha annunciato le Contingent Income Auto-Callable Yield Notes collegate alla performance di tre importanti indici: Nasdaq-100 Technology Sector Index, Russell 2000 Index e S&P 500 Index. Le note offrono:
Caratteristiche principali:
- Pagamenti mensili di cedola condizionata di 8,542$ ogni 1.000$ (10,25% annuo) se tutti gli indici sottostanti sono superiori alle rispettive barriere di cedola
- Durata di 3 anni con opzione di richiamo automatico mensile a partire dal 30 dicembre 2025
- Cedola e barriera soglia fissate al 70% del valore iniziale per ciascun indice
- Valore stimato iniziale compreso tra 915,70$ e 965,70$ per nota
Considerazioni sul rischio: Nessuna protezione garantita del capitale, rendimenti limitati ai pagamenti della cedola, soggetti a richiamo automatico e esposizione all'indice sottostante con la performance peggiore. L'investimento è soggetto al rischio di credito di BofA Finance con BAC come garante.
Bank of America ha anunciado Notas de Rendimiento Auto-Callable con Ingreso Contingente vinculadas al desempeño de tres índices principales: Nasdaq-100 Technology Sector Index, Russell 2000 Index y S&P 500 Index. Las notas ofrecen:
Características clave:
- Pagos mensuales de cupón contingente de $8.542 por cada $1,000 (10.25% anual) si todos los índices subyacentes están por encima de sus barreras de cupón
- Plazo de 3 años con opción de llamada automática mensual a partir del 30 de diciembre de 2025
- Cupón y barrera umbral establecidos en 70% del valor inicial para cada índice
- Rango estimado de valor inicial: $915.70-$965.70 por nota
Consideraciones de riesgo: No hay protección garantizada del capital, retornos limitados a los pagos de cupón, sujetos a la opción de llamada automática y exposición al índice subyacente con peor desempeño. La inversión está sujeta al riesgo crediticio de BofA Finance con BAC como garante.
Bank of America는 나스닥-100 기술 섹터 지수, 러셀 2000 지수, S&P 500 지수 등 세 가지 주요 지수의 성과에 연동된 조건부 수익 자동 콜 가능 수익 노트를 발표했습니다. 해당 노트는 다음과 같은 특징을 갖고 있습니다:
주요 특징:
- 모든 기초 지수가 쿠폰 장벽 이상일 경우, 매월 1,000달러당 8.542달러의 조건부 쿠폰 지급 (연 10.25%)
- 3년 만기, 2025년 12월 30일부터 매월 자동 콜 기능 적용
- 각 지수의 시작 가치 대비 70%로 설정된 쿠폰 및 임계 장벽
- 초기 예상 가치 범위: 노트당 915.70달러~965.70달러
위험 고려사항: 원금 보장 없음, 쿠폰 지급에 한정된 수익, 자동 콜 기능 적용, 최저 성과 지수에 대한 노출. 투자 시 BofA Finance의 신용 위험이 있으며 BAC가 보증인입니다.
Bank of America a annoncé des Notes à Rendement Auto-Rappelables à Revenu Conditionnel liées à la performance de trois indices majeurs : l'indice Nasdaq-100 Technology Sector, l'indice Russell 2000 et l'indice S&P 500. Ces notes offrent :
Caractéristiques principales :
- Paiements mensuels de coupon conditionnels de 8,542 $ pour 1 000 $ (10,25 % par an) si tous les indices sous-jacents sont au-dessus de leurs barrières de coupon
- Durée de 3 ans avec option de rappel automatique mensuel à partir du 30 décembre 2025
- Coupon et barrière seuil fixés à 70 % de la valeur initiale pour chaque indice
- Valeur estimée initiale comprise entre 915,70 $ et 965,70 $ par note
Considérations sur les risques : Pas de protection garantie du capital, rendements limités aux paiements de coupon, soumis à l'option de rappel automatique et exposés à l'indice sous-jacent le moins performant. L'investissement est soumis au risque de crédit de BofA Finance avec BAC en tant que garant.
Bank of America hat Contingent Income Auto-Callable Yield Notes angekündigt, die an die Performance von drei wichtigen Indizes gebunden sind: Nasdaq-100 Technology Sector Index, Russell 2000 Index und S&P 500 Index. Die Notes bieten:
Hauptmerkmale:
- Monatliche bedingte Kuponzahlungen von 8,542 $ pro 1.000 $ (10,25 % p.a.), sofern alle zugrunde liegenden Indizes über ihren Kupon-Barrieren liegen
- Laufzeit von 3 Jahren mit automatischer monatlicher Rückrufoption ab dem 30. Dezember 2025
- Kupon- und Schwellenbarriere bei 70% des Startwerts für jeden Index
- Geschätzter Anfangswertbereich: 915,70 $ bis 965,70 $ pro Note
Risikohinweise: Keine garantierte Kapitalrückzahlung, begrenzte Renditen auf Kuponzahlungen, unterliegen der automatischen Rückrufoption und der Exponierung gegenüber dem schlechtesten zugrunde liegenden Index. Die Investition unterliegt dem Kreditrisiko von BofA Finance mit BAC als Garantiegeber.
Terms of the Notes
The Contingent Income Auto-Callable Yield Notes Linked to the Least Performing of the Nasdaq-100® Technology Sector Index, the Russell 2000® Index and the S&P 500® Index (the “Notes”) provide a monthly Contingent Coupon Payment of $8.542 on the applicable Contingent Payment Date if, on any monthly Observation Date, the Observation Value of each Underlying is greater than or equal to its Coupon Barrier. Beginning with the December 30, 2025 Call Observation Date, the Notes will be automatically callable monthly for an amount equal to the principal amount plus the relevant Contingent Coupon Payment, if the Observation Value of each Underlying is greater than or equal to 100.00% of its Starting Value on any Call Observation Date. No further amounts will be payable following an Automatic Call. If the Notes are not automatically called, at maturity you will receive the Redemption Amount, calculated as described under “Redemption Amount Determination.”
| Issuer: | BofA Finance LLC (“BofA Finance”) |
| Guarantor: | Bank of America Corporation (“BAC”) |
| Term: | Approximately 3 years, unless previously automatically called. |
| Underlyings: | The Nasdaq-100® Technology Sector Index (Bloomberg symbol: “NDXT”), the Russell 2000® Index (Bloomberg symbol: “RTY”) and the S&P 500® Index (Bloomberg symbol: “SPX”), each a price return index. |
| Pricing and Issue Dates*: | June 30, 2025 and July 3, 2025, respectively. |
| Observation Dates†*: | Monthly. Please see the Preliminary Pricing Supplement for further details. |
| Call Observation Dates†*: | Monthly. Please see the Preliminary Pricing Supplement for further details. |
| Call Value: | For each Underlying, 100% of its Starting Value. |
| Coupon Barrier: | For each Underlying, 70% of its Starting Value. |
| Threshold Value: | For each Underlying, 70% of its Starting Value. |
| Contingent Coupon Payment*: | If, on any monthly Observation Date, the Observation Value of each Underlying is greater than or equal to its Coupon Barrier, we will pay a Contingent Coupon Payment of $8.542 per $1,000.00 in principal amount of Notes (equal to a rate of 0.8542% per month or 10.25% per annum) on the applicable Contingent Payment Date (including the Maturity Date). |
| Automatic Call: | Beginning with the December 30, 2025 Call Observation Date, all (but not less than all) of the Notes will be automatically called if the Observation Value of each Underlying is greater than or equal to its Call Value on any Call Observation Date. If the Notes are automatically called, the Early Redemption Amount will be paid on the applicable Call Payment Date. No further amounts will be payable following an Automatic Call. |
| Early Redemption Amount: | For each $1,000 principal amount of Notes, $1,000 plus the applicable Contingent Coupon Payment. |
| Initial Estimated Value Range: | $915.70-$965.70 per Note. |
| Underwriting Discount*: | $10.00 (1.00% of the public offering price) per Note. |
| CUSIP: | 09711HZD8. |
| Preliminary Pricing Supplement: | https://www.sec.gov/Archives/edgar/data/70858/000191870425009950/form424b2.htm |
* Subject to change prior to the Pricing Date. † Subject to adjustment. Please see the Preliminary Pricing Supplement for further details.
|
|
Redemption Amount Determination
(assuming the Notes have not been automatically called)
Hypothetical Returns at Maturity
| Underlying Return of the Least Performing Underlying | Redemption Amount per Note (including any final Contingent Coupon Payment) |
Return on the Notes(1) |
| 60.00% | $1,008.542 | 0.8542% |
| 50.00% | $1,008.542 | 0.8542% |
| 40.00% | $1,008.542 | 0.8542% |
| 30.00% | $1,008.542 | 0.8542% |
| 20.00% | $1,008.542 | 0.8542% |
| 10.00% | $1,008.542 | 0.8542% |
| 5.00% | $1,008.542 | 0.8542% |
| 2.00% | $1,008.542 | 0.8542% |
| 0.00% | $1,008.542 | 0.8542% |
| -10.00% | $1,008.542 | 0.8542% |
| -20.00% | $1,008.542 | 0.8542% |
| -30.00%(2) | $1,008.542 | 0.8542% |
| -30.01% | $699.900 | -30.0100% |
| -40.00% | $600.000 | -40.0000% |
| -50.00% | $500.000 | -50.0000% |
| -100.00% | $0.000 | -100.0000% |
| (1) | The “Return on the Notes” is calculated based on the Redemption Amount and potential final Contingent Coupon Payment, not including any Contingent Coupon Payments paid prior to maturity. |
| (2) | This is the Underlying Return which corresponds to the Coupon Barrier and Threshold Value of the Least Performing Underlying. |
Risk Factors
| · | Your investment may result in a loss; there is no guaranteed return of principal. |
| · | Your return on the Notes is limited to the return represented by the Contingent Coupon Payments, if any, over the term of the Notes. |
| · | The Notes are subject to a potential Automatic Call, which would limit your ability to receive the Contingent Coupon Payments over the full term of the Notes. |
| · | You may not receive any Contingent Coupon Payments. |
| · | Your return on the Notes may be less than the yield on a conventional debt security of comparable maturity. |
| · | The Contingent Coupon Payment, Early Redemption Amount or Redemption Amount, as applicable, will not reflect changes in the levels of the Underlyings other than on the Observation Dates or Call Observation Dates, as applicable. |
| · | Because the Notes are linked to the least performing (and not the average performance) of the Underlyings, you may not receive any return on the Notes and may lose a significant portion or all of your investment in the Notes even if the Observation Value or Ending Value of one Underlying is greater than or equal to its Coupon Barrier or Threshold Value, as applicable. |
| · | Any payments on the Notes are subject to the credit risk of BofA Finance and the Guarantor, and actual or perceived changes in BofA Finance’s or the Guarantor’s creditworthiness are expected to affect the value of the Notes. |
| · | The public offering price you pay for the Notes will exceed their initial estimated value. |
| · | We cannot assure you that a trading market for your Notes will ever develop or be maintained. |
| · | Trading and hedging activities by BofA Finance, the Guarantor and any of their other affiliates, including BofAS, may create conflicts of interest with you and may affect your return on the Notes and their market value. |
| · | The Notes are subject to risks associated with small-size capitalization companies. |
| · | Adverse conditions in the technology sector may reduce your return on the Notes. |
| · | The Notes are subject to risks associated with foreign securities markets. |
| · | The stocks included in the NDXT are concentrated in one sector. |
| · | The publisher or the sponsor of an Underlying may adjust that Underlying in a way that affects its levels, and the publisher or the sponsor has no obligation to consider your interests. |
You may revoke your offer to purchase the Notes at any time prior to the time at which we accept such offer on the date the Notes are priced. We reserve the right to change the terms of, or reject any offer to purchase, the Notes prior to their issuance. In the event of any changes to the terms of the Notes, we will notify you and you will be asked to accept such changes in connection with your purchase. You may also choose to reject such changes in which case we may reject your offer to purchase.
Please see the Preliminary Pricing Supplement for complete product disclosure, including related risks and tax disclosure.
This fact sheet is a summary of the terms of the Notes and factors that you should consider before deciding to invest in the Notes. BofA Finance has filed a registration statement (including preliminary pricing supplement, product supplement, prospectus supplement and prospectus) with the Securities and Exchange Commission, or SEC, for the offering to which this fact sheet relates. Before you invest, you should read this fact sheet together with the Preliminary Pricing Supplement dated June 25, 2025, Product Supplement EQUITY-1 dated December 30, 2022 and Prospectus Supplement and Prospectus dated December 30, 2022 to understand fully the terms of the Notes and other considerations that are important in making a decision about investing in the Notes. If the terms described in the applicable Preliminary Pricing Supplement are inconsistent with those described herein, the terms described in the applicable Preliminary Pricing Supplement will control. You may get these documents without cost by visiting EDGAR on the SEC Web site at sec.gov or by clicking on the hyperlinks to each of the respective documents incorporated by reference in the Preliminary Pricing Supplement. Alternatively, BofA Finance, any agent or any dealer participating in this offering will arrange to send you the Preliminary Pricing Supplement, Product Supplement EQUITY-1 and Prospectus Supplement and Prospectus if you so request by calling toll-free at 1-800-294-1322.
FAQ
What are the key features of BAC's new Contingent Income Auto-Callable Yield Notes?
What is the downside risk for BAC's new Structured Notes?
What is the initial estimated value range for BAC's new Structured Notes?
What are the major risk factors for BAC's new Structured Notes?
When will BAC's new Structured Notes be priced and issued?
