[FWP] Bank of America Corporation Free Writing Prospectus
Bank of America has announced new Capped Leveraged Index Return Notes (LIRNs) linked to the MSCI Emerging Markets Index with the following key features:
- Principal Amount: $10.00 per unit with approximately 2-year term
- Return Structure: 1.5-to-1 upside exposure up to a capped value of $12.80-$13.20 (28-32% max return)
- Downside Risk: 1-to-1 exposure to index declines with potential 100% principal loss
- No Interest Payments during the term
Key risks include: credit risk of BofA Finance and BAC as guarantor, capped upside potential, potential principal loss, emerging markets exposure, and impact of Russian securities removal from the index. The initial estimated value will be below the public offering price. Notes will not be exchange-listed and holders have no rights to underlying securities or dividends.
Bank of America ha annunciato nuove Note di Rendimento Indicizzato a Leva con Tetto (LIRNs) collegate all'indice MSCI dei Mercati Emergenti con le seguenti caratteristiche principali:
- Importo Principale: $10,00 per unità con una durata di circa 2 anni
- Struttura del Rendimento: esposizione rialzista 1,5 a 1 fino a un valore massimo compreso tra $12,80 e $13,20 (rendimento massimo del 28-32%)
- Rischio al Ribasso: esposizione 1 a 1 alle diminuzioni dell'indice con possibile perdita totale del capitale
- Nessun Pagamento di Interessi durante la durata
I rischi principali includono: rischio di credito di BofA Finance e BAC come garanti, potenziale rendimento limitato dal tetto, possibile perdita del capitale, esposizione ai mercati emergenti e impatto della rimozione dei titoli russi dall'indice. Il valore stimato iniziale sarà inferiore al prezzo di offerta pubblica. Le note non saranno quotate in borsa e i detentori non avranno diritti sui titoli sottostanti o sui dividendi.
Bank of America ha anunciado nuevas Notas de Retorno Indexado Apalancado con Límite (LIRNs) vinculadas al índice MSCI de Mercados Emergentes con las siguientes características clave:
- Monto Principal: $10.00 por unidad con un plazo aproximado de 2 años
- Estructura de Retorno: exposición al alza de 1.5 a 1 hasta un valor tope de $12.80-$13.20 (retorno máximo del 28-32%)
- Riesgo a la Baja: exposición 1 a 1 a las caídas del índice con posible pérdida total del principal
- Sin Pagos de Intereses durante el plazo
Los riesgos clave incluyen: riesgo crediticio de BofA Finance y BAC como garante, potencial de ganancia limitada por el tope, posible pérdida del principal, exposición a mercados emergentes e impacto de la eliminación de valores rusos del índice. El valor estimado inicial será inferior al precio de oferta pública. Las notas no estarán listadas en bolsa y los tenedores no tendrán derechos sobre los valores subyacentes ni dividendos.
뱅크오브아메리카는 MSCI 신흥시장 지수에 연계된 새로운 상한 레버리지 지수 수익 노트(LIRNs)를 다음과 같은 주요 특징과 함께 발표했습니다:
- 원금 금액: 단위당 $10.00, 약 2년 만기
- 수익 구조: 최대 $12.80-$13.20(최대 28-32% 수익)까지 1.5대 1 상승 노출
- 하락 위험: 지수 하락에 대해 1대 1 노출, 원금 전액 손실 가능성
- 만기 동안 이자 지급 없음
주요 위험 요소로는 BofA Finance 및 BAC 보증인의 신용 위험, 상한 수익 제한, 원금 손실 가능성, 신흥시장 노출, 러시아 증권 지수 제외 영향 등이 있습니다. 초기 예상 가치는 공모가보다 낮을 것입니다. 노트는 거래소에 상장되지 않으며, 보유자는 기초 증권이나 배당금에 대한 권리가 없습니다.
Bank of America a annoncé de nouvelles Notes à Rendement Indexé à Effet de Levier Plafonné (LIRNs) liées à l'indice MSCI des Marchés Émergents avec les caractéristiques clés suivantes :
- Montant Principal : 10,00 $ par unité avec une durée d'environ 2 ans
- Structure de Rendement : exposition à la hausse de 1,5 pour 1 jusqu'à une valeur plafonnée entre 12,80 $ et 13,20 $ (rendement maximal de 28 à 32 %)
- Risque à la Baisse : exposition 1 pour 1 aux baisses de l'indice avec une perte potentielle de 100 % du principal
- Pas de Paiements d'Intérêts pendant la durée
Les principaux risques comprennent : le risque de crédit de BofA Finance et BAC en tant que garant, le potentiel de gain plafonné, la perte possible du principal, l'exposition aux marchés émergents et l'impact du retrait des titres russes de l'indice. La valeur estimée initiale sera inférieure au prix d'offre publique. Les notes ne seront pas cotées en bourse et les détenteurs n'auront aucun droit sur les titres sous-jacents ni sur les dividendes.
Bank of America hat neue Begrenzte Hebel-Index-Rendite-Notes (LIRNs) angekündigt, die mit dem MSCI Emerging Markets Index verbunden sind, mit folgenden Hauptmerkmalen:
- Kapitalbetrag: 10,00 $ pro Einheit mit einer Laufzeit von ca. 2 Jahren
- Renditestruktur: 1,5-fache Aufwärtsbeteiligung bis zu einem begrenzten Wert von 12,80 $-13,20 $ (max. Rendite 28-32%)
- Abwärtsrisiko: 1:1 Beteiligung an Indexverlusten mit möglichem vollständigem Kapitalverlust
- Keine Zinszahlungen während der Laufzeit
Wesentliche Risiken umfassen: Kreditrisiko von BofA Finance und BAC als Garantiegeber, begrenztes Aufwärtspotenzial, mögliches Kapitalverlustrisiko, Engagement in Schwellenmärkten und Auswirkungen der Entfernung russischer Wertpapiere aus dem Index. Der anfängliche geschätzte Wert wird unter dem öffentlichen Ausgabepreis liegen. Die Notes werden nicht an der Börse gehandelt, und Inhaber haben keine Rechte an den zugrundeliegenden Wertpapieren oder Dividenden.
- Offers 1.5-to-1 leveraged upside exposure to emerging markets growth potential up to a cap of approximately 30%
- Principal protection against market increases, maintaining initial $10 investment value if index stays flat
- Maximum potential return of around 30% (based on capped value of $12.80-$13.20) over two-year term
- No principal protection with 1-to-1 downside exposure - investors can lose up to 100% of investment
- Upside potential is capped at approximately 30% even if the underlying index performs better
- No dividend payments or interest distributions during the two-year term
- Exposure to emerging markets risks including geopolitical issues (e.g., Russian securities removal impact)
- Credit risk exposure to both BofA Finance and Bank of America Corporation as guarantor
Bank of America ha annunciato nuove Note di Rendimento Indicizzato a Leva con Tetto (LIRNs) collegate all'indice MSCI dei Mercati Emergenti con le seguenti caratteristiche principali:
- Importo Principale: $10,00 per unità con una durata di circa 2 anni
- Struttura del Rendimento: esposizione rialzista 1,5 a 1 fino a un valore massimo compreso tra $12,80 e $13,20 (rendimento massimo del 28-32%)
- Rischio al Ribasso: esposizione 1 a 1 alle diminuzioni dell'indice con possibile perdita totale del capitale
- Nessun Pagamento di Interessi durante la durata
I rischi principali includono: rischio di credito di BofA Finance e BAC come garanti, potenziale rendimento limitato dal tetto, possibile perdita del capitale, esposizione ai mercati emergenti e impatto della rimozione dei titoli russi dall'indice. Il valore stimato iniziale sarà inferiore al prezzo di offerta pubblica. Le note non saranno quotate in borsa e i detentori non avranno diritti sui titoli sottostanti o sui dividendi.
Bank of America ha anunciado nuevas Notas de Retorno Indexado Apalancado con Límite (LIRNs) vinculadas al índice MSCI de Mercados Emergentes con las siguientes características clave:
- Monto Principal: $10.00 por unidad con un plazo aproximado de 2 años
- Estructura de Retorno: exposición al alza de 1.5 a 1 hasta un valor tope de $12.80-$13.20 (retorno máximo del 28-32%)
- Riesgo a la Baja: exposición 1 a 1 a las caídas del índice con posible pérdida total del principal
- Sin Pagos de Intereses durante el plazo
Los riesgos clave incluyen: riesgo crediticio de BofA Finance y BAC como garante, potencial de ganancia limitada por el tope, posible pérdida del principal, exposición a mercados emergentes e impacto de la eliminación de valores rusos del índice. El valor estimado inicial será inferior al precio de oferta pública. Las notas no estarán listadas en bolsa y los tenedores no tendrán derechos sobre los valores subyacentes ni dividendos.
뱅크오브아메리카는 MSCI 신흥시장 지수에 연계된 새로운 상한 레버리지 지수 수익 노트(LIRNs)를 다음과 같은 주요 특징과 함께 발표했습니다:
- 원금 금액: 단위당 $10.00, 약 2년 만기
- 수익 구조: 최대 $12.80-$13.20(최대 28-32% 수익)까지 1.5대 1 상승 노출
- 하락 위험: 지수 하락에 대해 1대 1 노출, 원금 전액 손실 가능성
- 만기 동안 이자 지급 없음
주요 위험 요소로는 BofA Finance 및 BAC 보증인의 신용 위험, 상한 수익 제한, 원금 손실 가능성, 신흥시장 노출, 러시아 증권 지수 제외 영향 등이 있습니다. 초기 예상 가치는 공모가보다 낮을 것입니다. 노트는 거래소에 상장되지 않으며, 보유자는 기초 증권이나 배당금에 대한 권리가 없습니다.
Bank of America a annoncé de nouvelles Notes à Rendement Indexé à Effet de Levier Plafonné (LIRNs) liées à l'indice MSCI des Marchés Émergents avec les caractéristiques clés suivantes :
- Montant Principal : 10,00 $ par unité avec une durée d'environ 2 ans
- Structure de Rendement : exposition à la hausse de 1,5 pour 1 jusqu'à une valeur plafonnée entre 12,80 $ et 13,20 $ (rendement maximal de 28 à 32 %)
- Risque à la Baisse : exposition 1 pour 1 aux baisses de l'indice avec une perte potentielle de 100 % du principal
- Pas de Paiements d'Intérêts pendant la durée
Les principaux risques comprennent : le risque de crédit de BofA Finance et BAC en tant que garant, le potentiel de gain plafonné, la perte possible du principal, l'exposition aux marchés émergents et l'impact du retrait des titres russes de l'indice. La valeur estimée initiale sera inférieure au prix d'offre publique. Les notes ne seront pas cotées en bourse et les détenteurs n'auront aucun droit sur les titres sous-jacents ni sur les dividendes.
Bank of America hat neue Begrenzte Hebel-Index-Rendite-Notes (LIRNs) angekündigt, die mit dem MSCI Emerging Markets Index verbunden sind, mit folgenden Hauptmerkmalen:
- Kapitalbetrag: 10,00 $ pro Einheit mit einer Laufzeit von ca. 2 Jahren
- Renditestruktur: 1,5-fache Aufwärtsbeteiligung bis zu einem begrenzten Wert von 12,80 $-13,20 $ (max. Rendite 28-32%)
- Abwärtsrisiko: 1:1 Beteiligung an Indexverlusten mit möglichem vollständigem Kapitalverlust
- Keine Zinszahlungen während der Laufzeit
Wesentliche Risiken umfassen: Kreditrisiko von BofA Finance und BAC als Garantiegeber, begrenztes Aufwärtspotenzial, mögliches Kapitalverlustrisiko, Engagement in Schwellenmärkten und Auswirkungen der Entfernung russischer Wertpapiere aus dem Index. Der anfängliche geschätzte Wert wird unter dem öffentlichen Ausgabepreis liegen. Die Notes werden nicht an der Börse gehandelt, und Inhaber haben keine Rechte an den zugrundeliegenden Wertpapieren oder Dividenden.
|
CAPPED LEVERAGED INDEX RETURN NOTES® (CAPPED LIRNs®)
|
Filed Pursuant to Rule 433
Registration No. 333-268718
|
|
Capped LIRNs® Linked to the MSCI Emerging Markets Index
|
The graph above and the table below reflect the hypothetical return on the notes, based on the terms contained in the table to the left (using the mid-point for any range(s)). The graph and table have been prepared for purposes of illustration only and do not take into account any tax consequences from investing in the notes.
Hypothetical Percentage Change from the Starting Value to the Ending Value
Hypothetical Redemption Amount per Unit
Hypothetical Total Rate of Return on the Notes
-100.00%
$0.00
-100.00%
-75.00%
$2.50
-75.00%
-50.00%
$5.00
-50.00%
-40.00%
$6.00
-40.00%
-30.00%
$7.00
-30.00%
-20.00%
$8.00
-20.00%
-10.00%
$9.00
-10.00%
-5.00%
$9.50
-5.00%
0.00%(1)
$10.00
0.00%
2.00%
$10.30
3.00%
3.00%
$10.45
4.50%
5.00%
$10.75
7.50%
10.00%
$11.50
15.00%
20.00%
$13.00(2)
30.00%
30.00%
$13.00
30.00%
40.00%
$13.00
30.00%
50.00%
$13.00
30.00%
60.00%
$13.00
30.00%
70.00%
$13.00
30.00%
(1) This hypothetical percentage change corresponds to the Threshold Value.
(2) The Redemption Amount per unit cannot exceed the hypothetical Capped Value
|
|
|
Issuer
|
BofA Finance LLC (“BofA Finance”)
|
|
|
Guarantor
|
Bank of America Corporation (“BAC”)
|
|
|
Principal Amount
|
$10.00 per unit
|
|
|
Term
|
Approximately two years
|
|
|
Market Measure
|
The MSCI Emerging Markets Index (Bloomberg symbol: “MXEF”)
|
|
|
Payout Profile at Maturity
|
●
1.5-to-1 upside exposure to increases in the Market Measure, subject to the Capped Value
●
1-to-1 downside exposure to decreases in the Market Measure, with up to 100.00% of your principal at risk
|
|
|
Capped Value
|
[$12.80 to $13.20] per unit, a [28.00% to 32.00%] return over the principal amount, to be determined on the pricing date.
|
|
|
Threshold Value
|
100% of the Starting Value of the Market Measure
|
|
|
Interest Payments
|
None
|
|
|
Preliminary Offering Documents
|
https://www.sec.gov/Archives/edgar/data/70858/000191870425009947/bofa-34240_424b2.htm
|
|
|
Exchange Listing
|
No
|
|
|
You should read the relevant Preliminary Offering Documents before you invest. Click on the Preliminary Offering Documents hyperlink above or call your Financial Advisor for a hard copy.
Risk Factors
Please see the Preliminary Offering Documents for a description of certain risks related to this investment, including, but not limited to, the following:
●
Depending on the performance of the Market Measure as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal.
●
Payments on the notes are subject to the credit risk of BofA Finance and the credit risk of BAC, and actual or perceived changes in the creditworthiness of BofA Finance or BAC are expected to affect the value of the notes. If BofA Finance and BAC become insolvent or are unable to pay their respective obligations, you may lose your entire investment.
●
Your investment return is limited to the return represented by the Capped Value and may be less than a comparable investment directly in the Market Measure or the stocks held by the Market Measure.
●
The initial estimated value of the notes on the pricing date will be less than their public offering price.
●
If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date.
●
You will have no rights of a holder of the Market Measure or the securities held by the Market Measure, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those securities.
●
Your return on the notes and the value of the notes may be affected by exchange rate movements and factors affecting the international securities markets
●
An investment in the notes will involve risks associated with investments that are linked to the equity securities of issuers from emerging markets.
●
The removal of Russian securities from the Index may have a material adverse effect on the notes.
Final terms will be set on the pricing date within the given range for the specified Market-Linked Investment. Please see the Preliminary Offering Documents for complete product disclosure, including related risks and tax disclosure.
|
||
FAQ
What is BAC's new Capped LIRNs investment product linked to?
What is the maximum return potential for BAC's new Capped LIRNs?
What are the main risks of BAC's new Capped LIRNs investment product?
How does the downside protection work for BAC's new Capped LIRNs?
Will BAC's new Capped LIRNs pay any interest or dividends?
