The notes are senior unsecured debt securities issued by BofA Finance LLC and guaranteed by Bank of America Corporation (BAC). They offer 2-to-1 upside exposure to the S&P 500® Index with a cap of 19.60%, and 1-to-1 downside exposure beyond a 10.00% decline, with up to 90.00% of principal at risk. Payments occur at maturity and are subject to the credit risk of both BofA Finance and BAC.
The initial estimated value of the notes is $9.782 per unit, lower than the public offering price due to BAC's internal funding rate, underwriting discount, and hedging-related charge. The notes are not insured or secured and rank equally with other unsecured obligations of BofA Finance and BAC.
Investors receive a leveraged return if the S&P 500® Index ends above the starting value. If the index ends below the starting value but above the threshold value of 90%, investors receive principal. If below the threshold, a portion of the principal may be lost.
Key risks include market risk, as the notes are not guaranteed and returns are capped; credit risk from BofA Finance and BAC; limited secondary market liquidity with no exchange listing; and potential conflicts of interest.
The notes are linked to the S&P 500® Index, a price return index that does not include dividends. The index is maintained by S&P Dow Jones Indices LLC, and its calculation methodology, including float adjustment, may impact the notes' value.
The notes are issued with a 2-year maturity and are subject to various fees and charges, including the underwriting discount and hedging-related charge. The redemption amount is calculated based on the index performance and a principal amount of $10 per unit.
