This pricing supplement details the terms and conditions of $Fixed Rate Callable Notes, due February 19, 2036, issued by Bank of America Corporation (“BAC”). The notes are senior unsecured debt securities priced on February 17, 2026, with a maturity date of February 19, 2036. Key features include:
Terms and Conditions
- Interest Rate: 5.00% per annum, paid annually starting February 19, 2027.
- Callable: BAC reserves the right to redeem all notes on February 19, 2031, and on each subsequent Call Date, at 100% of principal plus accrued interest.
- Denominations: Minimum $1,000, in whole multiples thereof.
- Listing: The notes will not be listed on any securities exchange.
- CUSIP Number: 06055JQM4.
Risk Factors
- Early Redemption: Holders must be willing to have notes redeemed as early as February 19, 2031, potentially impacting reinvestment opportunities.
- Interest Rate Risk: Longer-term notes are more sensitive to interest rate fluctuations, which could reduce market value if rates rise.
- Credit Risk: Payments are subject to BAC’s creditworthiness; changes in ratings or credit spreads may affect market value.
- Valuation and Market Risks: Costs associated with development, hedging, and distribution may reduce secondary market prices.
- Liquidity Risk: No assurance of a trading market; BofA Securities may act as a market-maker but is not obligated to do so.
- Conflicts of Interest: Trading and hedging activities by BAC and its affiliates may create conflicts of interest with holders.
U.S. Federal Income Tax Considerations
- Interest Income: Interest payments are treated as ordinary income.
- Capital Gains/Losses: Gain or loss upon disposition is generally capital gain or loss, subject to long-term holding periods and deduction limitations.
Supplemental Plan of Distribution
- Selling Agent: BofA Securities will act as the selling agent, receiving compensation and potentially offering notes at discounts to other broker-dealers.
- Conflict of Interest: Selling agent is not a fiduciary; investors should consult advisors.
- Settlement: Notes will be delivered in book-entry form with settlement greater than one business day after pricing.
European Economic Area and United Kingdom
- Qualified Investors Only: Offers in the EEA and UK are restricted to qualified investors.
- Retail Investor Prohibitions: Notes are not intended for retail investors in the EEA or UK, and relevant key information documents have not been prepared.
The notes are unsecured and involve investment risks, including credit risk and market volatility. Holders should carefully consider these risks before investing.
