[FWP] Bank of America Corporation Free Writing Prospectus
Bank of America Corporation (BAC) Free Writing Prospectus: BofA Finance LLC, guaranteed by BAC, is offering Autocallable Strategic Accelerated Redemption Securities linked to a six-index international equity basket. Units are priced at $10 each, carry a maximum three-year term and are automatically redeemed if, on any annual observation date, the basket closes at or above its starting value.
Return potential: If called, investors will receive $10.90-$11.00 after year one (鈮�9-10% premium), $11.80-$12.00 after year two (鈮�18-20%) or $12.70-$13.00 after year three (鈮�27-30%). These ranges will be fixed on the pricing date.
Risk profile: Should the notes remain outstanding to maturity, principal is fully exposed on a 1-to-1 basis below the starting value; the threshold is 100%, so there is no downside buffer. Holders face unsecured credit risk of both BofA Finance and BAC, the initial estimated value will be below the public offering price, and secondary-market liquidity is expected to be limited.
Basket composition (initial weights):
- EURO STOXX 50 鈥� 40%
- FTSE 100 鈥� 20%
- Nikkei 225 鈥� 20%
- Swiss Market Index 鈥� 7.5%
- S&P/ASX 200 鈥� 7.5%
- FTSE China 50 鈥� 5%
Bank of America Corporation (BAC) Free Writing Prospectus: BofA Finance LLC, garantita da BAC, offre Autocallable Strategic Accelerated Redemption Securities collegate a un paniere internazionale di azioni composto da sei indici. Le unit脿 sono quotate a 10 dollari ciascuna, hanno una durata massima di tre anni e vengono automaticamente rimborsate se, in una qualsiasi data di osservazione annuale, il valore del paniere chiude pari o superiore al valore iniziale.
Potenziale di rendimento: Se richiamate, gli investitori riceveranno da 10,90 a 11,00 dollari dopo il primo anno (circa 9-10% di premio), da 11,80 a 12,00 dollari dopo il secondo anno (circa 18-20%) o da 12,70 a 13,00 dollari dopo il terzo anno (circa 27-30%). Questi intervalli saranno definiti alla data di prezzo.
Profilo di rischio: Se le note rimangono in essere fino alla scadenza, il capitale 猫 esposto integralmente in modo 1 a 1 sotto il valore iniziale; la soglia 猫 del 100%, quindi non 猫 presente alcuna protezione al ribasso. I detentori sono esposti al rischio di credito non garantito sia di BofA Finance che di BAC, il valore stimato iniziale sar脿 inferiore al prezzo di offerta pubblica e la liquidit脿 sul mercato secondario 猫 prevista limitata.
Composizione del paniere (pesi iniziali):
- EURO STOXX 50 鈥� 40%
- FTSE 100 鈥� 20%
- Nikkei 225 鈥� 20%
- Swiss Market Index 鈥� 7,5%
- S&P/ASX 200 鈥� 7,5%
- FTSE China 50 鈥� 5%
Bank of America Corporation (BAC) Prospecto de Escritura Libre: BofA Finance LLC, garantizada por BAC, ofrece Valores de Redenci贸n Acelerada Estrat茅gica Autollamables vinculados a una cesta internacional de acciones compuesta por seis 铆ndices. Las unidades tienen un precio de 10 d贸lares cada una, un plazo m谩ximo de tres a帽os y se redimen autom谩ticamente si, en cualquier fecha de observaci贸n anual, la cesta cierra en o por encima de su valor inicial.
Potencial de rendimiento: Si se llaman, los inversores recibir谩n entre 10,90 y 11,00 d贸lares despu茅s del primer a帽o (鈮�9-10% de prima), entre 11,80 y 12,00 d贸lares despu茅s del segundo a帽o (鈮�18-20%) o entre 12,70 y 13,00 d贸lares despu茅s del tercer a帽o (鈮�27-30%). Estos rangos se fijar谩n en la fecha de fijaci贸n del precio.
Perfil de riesgo: Si los bonos permanecen vigentes hasta el vencimiento, el principal est谩 completamente expuesto en una proporci贸n 1 a 1 por debajo del valor inicial; el umbral es del 100%, por lo que no hay protecci贸n a la baja. Los tenedores enfrentan riesgo crediticio no asegurado tanto de BofA Finance como de BAC, el valor estimado inicial ser谩 inferior al precio de oferta p煤blica y se espera que la liquidez en el mercado secundario sea limitada.
Composici贸n de la cesta (pesos iniciales):
- EURO STOXX 50 鈥� 40%
- FTSE 100 鈥� 20%
- Nikkei 225 鈥� 20%
- Swiss Market Index 鈥� 7,5%
- S&P/ASX 200 鈥� 7,5%
- FTSE China 50 鈥� 5%
Bank of America Corporation (BAC) 鞛愳湢 鞛戩劚 鞎堧偞靹�: BAC臧� 氤挫頃橂姅 BofA Finance LLC電� 6臧� 歆�靾橂 甑劚霅� 甑牅 欤检嫕 氚旍姢旒撿棎 鞐半彊霅� 鞛愲彊 靸來櫂順� 鞝勲灥 臧�靻� 靸來櫂 歃濌秾鞚� 鞝滉车頃╇媹雼�. 雼渼 臧�瓴╈潃 臧侁皝 10雼煬鞚措┌ 斓滊寑 毵岅赴電� 3雲勳澊瓿�, 鞐瓣皠 甏�旄§澕 欷� 鞏措姁 雮犾澊霌� 氚旍姢旒撿澊 鞁滌瀾 臧�旃� 鞚挫儊鞙茧 毵堦皭頃橂┐ 鞛愲彊鞙茧 靸來櫂霅╇媹雼�.
靾橃澋 鞛犾灛霠�: 靸來櫂 鞁� 韴瀽鞛愲姅 1雲� 頉勳棎 10.90~11.00雼煬(鞎� 9~10% 頂勲Μ氙胳梽), 2雲� 頉勳棎 11.80~12.00雼煬(鞎� 18~20%), 3雲� 頉勳棎 12.70~13.00雼煬(鞎� 27~30%)毳� 氚涥矊 霅╇媹雼�. 鞚� 氩旍渼電� 臧�瓴� 毂呾爼鞚检棎 頇曥爼霅╇媹雼�.
鞙勴棙 頂勲頃�: 毵岅赴旯岇 歃濌秾鞚� 鞙犾霅橂┐ 鞗愱笀鞚� 鞁滌瀾 臧�旃� 鞎勲灅鞐愳劀 1雽�1 牍勳湪搿� 鞕勳爠頌� 雲胳稖霅╇媹雼�; 旮办靹犾潃 100%搿� 頃橂澖 氤错樃臧� 鞐嗢姷雼堧嫟. 氤挫湢鞛愲姅 BofA Finance鞕� BAC鞚� 氍措嫶氤� 鞁犾毄 鞙勴棙鞐� 雲胳稖霅橂┌, 齑堦赴 鞓堨儊 臧�旃橂姅 瓿店皽 氚滍枆臧�氤措嫟 雮碃, 2彀� 鞁滌灔 鞙犽彊靹膘潃 鞝滍暅鞝侅澕 瓴冹溂搿� 鞓堨儊霅╇媹雼�.
氚旍姢旒� 甑劚(齑堦赴 臧�欷戩箻):
- EURO STOXX 50 鈥� 40%
- FTSE 100 鈥� 20%
- Nikkei 225 鈥� 20%
- Swiss Market Index 鈥� 7.5%
- S&P/ASX 200 鈥� 7.5%
- FTSE China 50 鈥� 5%
Bank of America Corporation (BAC) Prospectus de r茅daction libre : BofA Finance LLC, garantie par BAC, propose des titres de remboursement acc茅l茅r茅 strat茅gique autocallables li茅s 脿 un panier international d'actions compos茅 de six indices. Les unit茅s sont propos茅es 脿 10 $ chacune, ont une dur茅e maximale de trois ans et sont automatiquement rembours茅es si, 脿 une date d'observation annuelle, le panier cl么ture 脿 ou au-dessus de sa valeur initiale.
Potentiel de rendement : En cas de rappel, les investisseurs recevront entre 10,90 $ et 11,00 $ apr猫s la premi猫re ann茅e (鈮�9-10 % de prime), entre 11,80 $ et 12,00 $ apr猫s la deuxi猫me ann茅e (鈮�18-20 %) ou entre 12,70 $ et 13,00 $ apr猫s la troisi猫me ann茅e (鈮�27-30 %). Ces fourchettes seront fix茅es 脿 la date de tarification.
Profil de risque : Si les titres restent en circulation jusqu'脿 l'茅ch茅ance, le capital est enti猫rement expos茅 en base 1 pour 1 en dessous de la valeur initiale ; le seuil est de 100 %, il n'y a donc pas de protection 脿 la baisse. Les d茅tenteurs sont expos茅s au risque de cr茅dit non garanti de BofA Finance et de BAC, la valeur estim茅e initiale sera inf茅rieure au prix d'offre publique, et la liquidit茅 sur le march茅 secondaire devrait 锚tre limit茅e.
Composition du panier (pond茅rations initiales) :
- EURO STOXX 50 鈥� 40 %
- FTSE 100 鈥� 20 %
- Nikkei 225 鈥� 20 %
- Swiss Market Index 鈥� 7,5 %
- S&P/ASX 200 鈥� 7,5 %
- FTSE China 50 鈥� 5 %
Bank of America Corporation (BAC) Free Writing Prospectus: Die von BAC garantierte BofA Finance LLC bietet Autocallable Strategic Accelerated Redemption Securities an, die an einen internationalen Aktienkorb aus sechs Indizes gekoppelt sind. Die Einheiten werden zu je 10 US-Dollar bepreist, haben eine maximale Laufzeit von drei Jahren und werden automatisch zur眉ckgezahlt, wenn der Korb an einem der j盲hrlichen Beobachtungstage auf oder 眉ber seinem Ausgangswert schlie脽t.
Renditepotenzial: Bei Aus眉bung erhalten Anleger nach dem ersten Jahr 10,90 bis 11,00 US-Dollar (鈮�9-10% Pr盲mie), nach dem zweiten Jahr 11,80 bis 12,00 US-Dollar (鈮�18-20%) oder nach dem dritten Jahr 12,70 bis 13,00 US-Dollar (鈮�27-30%). Diese Spannen werden am Preisfestsetzungstag festgelegt.
Risikoprofil: Bleiben die Notes bis zur F盲lligkeit bestehen, ist das Kapital unterhalb des Startwerts voll in einer 1-zu-1-Beziehung exponiert; die Schwelle liegt bei 100%, es gibt also keinen Abw盲rtsschutz. Inhaber tragen das unbesicherte Kreditrisiko von BofA Finance und BAC, der gesch盲tzte Anfangswert liegt unter dem 枚ffentlichen Angebotspreis, und die Liquidit盲t am Sekund盲rmarkt wird voraussichtlich begrenzt sein.
Zusammensetzung des Korbs (Anfangsgewichtungen):
- EURO STOXX 50 鈥� 40%
- FTSE 100 鈥� 20%
- Nikkei 225 鈥� 20%
- Swiss Market Index 鈥� 7,5%
- S&P/ASX 200 鈥� 7,5%
- FTSE China 50 鈥� 5%
- Call premiums of approximately 9-30% offer enhanced yield if the basket is flat or appreciates.
- Automatic call feature can shorten duration and return capital early, reducing exposure time.
- No downside protection; principal declines 1-to-1 with any basket drop below the starting value.
- Unsecured credit exposure to BofA Finance/BAC; repayment depends on issuer solvency.
- Initial estimated value below offer price and limited secondary liquidity may lead to early mark-to-market losses.
- Upside is capped at the call premium, underperforming direct equity ownership in strong bull markets.
Insights
TL;DR: Up to 30% call premium but zero downside buffer; credit and liquidity risks warrant careful suitability review.
The note is a standard autocall structure offering modest capped upside鈥�9-10% annually if the basket is flat or rises鈥攙ersus unlimited 1-to-1 downside beyond a 100% threshold. The weighting toward European and Japanese indices increases geographic diversification but still leaves investors exposed to global equity volatility. Because the initial fair value is below the $10 offer price, investors pay an up-front premium for the structure, and secondary-market bids are likely to be discounted further. Credit exposure to BofA Finance/BAC remains senior unsecured; while BAC is investment-grade, spreads can widen in stress scenarios. Overall, the product suits yield-seeking investors with a neutral-to-moderately-bullish view on international equities who are willing to accept full principal risk and limited liquidity.
TL;DR: Limited upside, unlimited downside; better seen as a high-risk funding vehicle for BAC than a core portfolio holding.
From a risk standpoint, the absence of any buffer means portfolio drawdowns mirror basket losses dollar-for-dollar, making the note effectively an equity substitute without dividends. The capped call premium implies negative convexity: investors forego gains beyond 30% while still absorbing all losses. Because the security is OTC and unlisted, exit prices depend on dealer discretion, compounding mark-to-market volatility. For BAC, the issuance provides low-cost funding and fee income, but the transaction is immaterial to shareholders. For investors, the proposition is neutral at best and potentially negative in a bearish market.
Bank of America Corporation (BAC) Free Writing Prospectus: BofA Finance LLC, garantita da BAC, offre Autocallable Strategic Accelerated Redemption Securities collegate a un paniere internazionale di azioni composto da sei indici. Le unit脿 sono quotate a 10 dollari ciascuna, hanno una durata massima di tre anni e vengono automaticamente rimborsate se, in una qualsiasi data di osservazione annuale, il valore del paniere chiude pari o superiore al valore iniziale.
Potenziale di rendimento: Se richiamate, gli investitori riceveranno da 10,90 a 11,00 dollari dopo il primo anno (circa 9-10% di premio), da 11,80 a 12,00 dollari dopo il secondo anno (circa 18-20%) o da 12,70 a 13,00 dollari dopo il terzo anno (circa 27-30%). Questi intervalli saranno definiti alla data di prezzo.
Profilo di rischio: Se le note rimangono in essere fino alla scadenza, il capitale 猫 esposto integralmente in modo 1 a 1 sotto il valore iniziale; la soglia 猫 del 100%, quindi non 猫 presente alcuna protezione al ribasso. I detentori sono esposti al rischio di credito non garantito sia di BofA Finance che di BAC, il valore stimato iniziale sar脿 inferiore al prezzo di offerta pubblica e la liquidit脿 sul mercato secondario 猫 prevista limitata.
Composizione del paniere (pesi iniziali):
- EURO STOXX 50 鈥� 40%
- FTSE 100 鈥� 20%
- Nikkei 225 鈥� 20%
- Swiss Market Index 鈥� 7,5%
- S&P/ASX 200 鈥� 7,5%
- FTSE China 50 鈥� 5%
Bank of America Corporation (BAC) Prospecto de Escritura Libre: BofA Finance LLC, garantizada por BAC, ofrece Valores de Redenci贸n Acelerada Estrat茅gica Autollamables vinculados a una cesta internacional de acciones compuesta por seis 铆ndices. Las unidades tienen un precio de 10 d贸lares cada una, un plazo m谩ximo de tres a帽os y se redimen autom谩ticamente si, en cualquier fecha de observaci贸n anual, la cesta cierra en o por encima de su valor inicial.
Potencial de rendimiento: Si se llaman, los inversores recibir谩n entre 10,90 y 11,00 d贸lares despu茅s del primer a帽o (鈮�9-10% de prima), entre 11,80 y 12,00 d贸lares despu茅s del segundo a帽o (鈮�18-20%) o entre 12,70 y 13,00 d贸lares despu茅s del tercer a帽o (鈮�27-30%). Estos rangos se fijar谩n en la fecha de fijaci贸n del precio.
Perfil de riesgo: Si los bonos permanecen vigentes hasta el vencimiento, el principal est谩 completamente expuesto en una proporci贸n 1 a 1 por debajo del valor inicial; el umbral es del 100%, por lo que no hay protecci贸n a la baja. Los tenedores enfrentan riesgo crediticio no asegurado tanto de BofA Finance como de BAC, el valor estimado inicial ser谩 inferior al precio de oferta p煤blica y se espera que la liquidez en el mercado secundario sea limitada.
Composici贸n de la cesta (pesos iniciales):
- EURO STOXX 50 鈥� 40%
- FTSE 100 鈥� 20%
- Nikkei 225 鈥� 20%
- Swiss Market Index 鈥� 7,5%
- S&P/ASX 200 鈥� 7,5%
- FTSE China 50 鈥� 5%
Bank of America Corporation (BAC) 鞛愳湢 鞛戩劚 鞎堧偞靹�: BAC臧� 氤挫頃橂姅 BofA Finance LLC電� 6臧� 歆�靾橂 甑劚霅� 甑牅 欤检嫕 氚旍姢旒撿棎 鞐半彊霅� 鞛愲彊 靸來櫂順� 鞝勲灥 臧�靻� 靸來櫂 歃濌秾鞚� 鞝滉车頃╇媹雼�. 雼渼 臧�瓴╈潃 臧侁皝 10雼煬鞚措┌ 斓滊寑 毵岅赴電� 3雲勳澊瓿�, 鞐瓣皠 甏�旄§澕 欷� 鞏措姁 雮犾澊霌� 氚旍姢旒撿澊 鞁滌瀾 臧�旃� 鞚挫儊鞙茧 毵堦皭頃橂┐ 鞛愲彊鞙茧 靸來櫂霅╇媹雼�.
靾橃澋 鞛犾灛霠�: 靸來櫂 鞁� 韴瀽鞛愲姅 1雲� 頉勳棎 10.90~11.00雼煬(鞎� 9~10% 頂勲Μ氙胳梽), 2雲� 頉勳棎 11.80~12.00雼煬(鞎� 18~20%), 3雲� 頉勳棎 12.70~13.00雼煬(鞎� 27~30%)毳� 氚涥矊 霅╇媹雼�. 鞚� 氩旍渼電� 臧�瓴� 毂呾爼鞚检棎 頇曥爼霅╇媹雼�.
鞙勴棙 頂勲頃�: 毵岅赴旯岇 歃濌秾鞚� 鞙犾霅橂┐ 鞗愱笀鞚� 鞁滌瀾 臧�旃� 鞎勲灅鞐愳劀 1雽�1 牍勳湪搿� 鞕勳爠頌� 雲胳稖霅╇媹雼�; 旮办靹犾潃 100%搿� 頃橂澖 氤错樃臧� 鞐嗢姷雼堧嫟. 氤挫湢鞛愲姅 BofA Finance鞕� BAC鞚� 氍措嫶氤� 鞁犾毄 鞙勴棙鞐� 雲胳稖霅橂┌, 齑堦赴 鞓堨儊 臧�旃橂姅 瓿店皽 氚滍枆臧�氤措嫟 雮碃, 2彀� 鞁滌灔 鞙犽彊靹膘潃 鞝滍暅鞝侅澕 瓴冹溂搿� 鞓堨儊霅╇媹雼�.
氚旍姢旒� 甑劚(齑堦赴 臧�欷戩箻):
- EURO STOXX 50 鈥� 40%
- FTSE 100 鈥� 20%
- Nikkei 225 鈥� 20%
- Swiss Market Index 鈥� 7.5%
- S&P/ASX 200 鈥� 7.5%
- FTSE China 50 鈥� 5%
Bank of America Corporation (BAC) Prospectus de r茅daction libre : BofA Finance LLC, garantie par BAC, propose des titres de remboursement acc茅l茅r茅 strat茅gique autocallables li茅s 脿 un panier international d'actions compos茅 de six indices. Les unit茅s sont propos茅es 脿 10 $ chacune, ont une dur茅e maximale de trois ans et sont automatiquement rembours茅es si, 脿 une date d'observation annuelle, le panier cl么ture 脿 ou au-dessus de sa valeur initiale.
Potentiel de rendement : En cas de rappel, les investisseurs recevront entre 10,90 $ et 11,00 $ apr猫s la premi猫re ann茅e (鈮�9-10 % de prime), entre 11,80 $ et 12,00 $ apr猫s la deuxi猫me ann茅e (鈮�18-20 %) ou entre 12,70 $ et 13,00 $ apr猫s la troisi猫me ann茅e (鈮�27-30 %). Ces fourchettes seront fix茅es 脿 la date de tarification.
Profil de risque : Si les titres restent en circulation jusqu'脿 l'茅ch茅ance, le capital est enti猫rement expos茅 en base 1 pour 1 en dessous de la valeur initiale ; le seuil est de 100 %, il n'y a donc pas de protection 脿 la baisse. Les d茅tenteurs sont expos茅s au risque de cr茅dit non garanti de BofA Finance et de BAC, la valeur estim茅e initiale sera inf茅rieure au prix d'offre publique, et la liquidit茅 sur le march茅 secondaire devrait 锚tre limit茅e.
Composition du panier (pond茅rations initiales) :
- EURO STOXX 50 鈥� 40 %
- FTSE 100 鈥� 20 %
- Nikkei 225 鈥� 20 %
- Swiss Market Index 鈥� 7,5 %
- S&P/ASX 200 鈥� 7,5 %
- FTSE China 50 鈥� 5 %
Bank of America Corporation (BAC) Free Writing Prospectus: Die von BAC garantierte BofA Finance LLC bietet Autocallable Strategic Accelerated Redemption Securities an, die an einen internationalen Aktienkorb aus sechs Indizes gekoppelt sind. Die Einheiten werden zu je 10 US-Dollar bepreist, haben eine maximale Laufzeit von drei Jahren und werden automatisch zur眉ckgezahlt, wenn der Korb an einem der j盲hrlichen Beobachtungstage auf oder 眉ber seinem Ausgangswert schlie脽t.
Renditepotenzial: Bei Aus眉bung erhalten Anleger nach dem ersten Jahr 10,90 bis 11,00 US-Dollar (鈮�9-10% Pr盲mie), nach dem zweiten Jahr 11,80 bis 12,00 US-Dollar (鈮�18-20%) oder nach dem dritten Jahr 12,70 bis 13,00 US-Dollar (鈮�27-30%). Diese Spannen werden am Preisfestsetzungstag festgelegt.
Risikoprofil: Bleiben die Notes bis zur F盲lligkeit bestehen, ist das Kapital unterhalb des Startwerts voll in einer 1-zu-1-Beziehung exponiert; die Schwelle liegt bei 100%, es gibt also keinen Abw盲rtsschutz. Inhaber tragen das unbesicherte Kreditrisiko von BofA Finance und BAC, der gesch盲tzte Anfangswert liegt unter dem 枚ffentlichen Angebotspreis, und die Liquidit盲t am Sekund盲rmarkt wird voraussichtlich begrenzt sein.
Zusammensetzung des Korbs (Anfangsgewichtungen):
- EURO STOXX 50 鈥� 40%
- FTSE 100 鈥� 20%
- Nikkei 225 鈥� 20%
- Swiss Market Index 鈥� 7,5%
- S&P/ASX 200 鈥� 7,5%
- FTSE China 50 鈥� 5%
FAQ
What is the maximum potential return on BAC's autocallable notes?
How does the automatic call feature work for BAC Autocallable Strategic Accelerated Redemption Securities?
Which indexes comprise the international equity basket underlying BAC's structured note?
Do BAC's autocallable notes provide any downside buffer?
What credit risks do investors face with BAC's structured notes?
Are the BAC autocallable notes listed on an exchange?
Where can I access the preliminary offering documents for BAC's structured note?
