BofA Finance LLC has filed a preliminary pricing supplement for its Auto-Callable Enhanced Return Notes linked to the Nasdaq-100 Index. This offering is significant as it showcases the company's strategy to enhance its product portfolio within the national commercial banking sector.
The notes are expected to price on October 23, 2026, and will issue on October 28, 2026. This product aims to attract investors looking for exposure to the Nasdaq-100 Index while offering potential enhanced returns.
According to the filing, the notes will have an approximate five-year term unless called prior to maturity. The payment on the notes will depend on the performance of the Nasdaq-100 Index, which is a price return index. The notes will not be listed on any securities exchange and are subject to the credit risk of BofA Finance LLC and Bank of America Corporation, which guarantees the notes.
As part of the offering, the notes are being issued in minimum denominations of $1,000, with a public offering price set at $1,000 per note. The underwriting discount per note is noted as $19.50, resulting in proceeds of approximately $980.50 per note before expenses.
This filing may impact various stakeholders, including potential investors interested in structured products, as well as competitors in the national commercial banking sector who may look to enhance their own offerings in response.
The filing does not specify what happens next, but the upcoming pricing and issuance dates are critical milestones for BofA Finance LLC.