Market-Linked Step Up Notes Linked to the EURO STOXX 50® Index
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 EURO STOXX 50® Index (Bloomberg symbol: “SX5E”), a price return index
Payout Profile at Maturity
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If the Market Measure is flat or increases up to the Step Up Value, a return equal to the Step Up Payment
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If the Market Measure increases above the Step Up Value, a return equal to the percentage increase in the Market Measure
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1-to-1 downside exposure to decreases in the Market Measure, with up to 100% of your principal at risk
Step Up Value
[111.00% to 115.00%] of the Starting Value, to be determined on the pricing date
Step Up Payment
[$1.10 to $1.50] per unit, a [11.00% to 15.00%] return over the principal amount, to be determined on the pricing date
Threshold Value
100% of the Starting Value
Interest Payments
None
Preliminary Offering Documents
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:
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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.
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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.
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The initial estimated value of the notes on the pricing date will be less than their public offering price.
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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.
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Your return on the notes may be affected by factors affecting the international securities markets, specifically changes within the Eurozone. The Eurozone is and has been undergoing severe financial stress, and the political, legal and regulatory ramifications are impossible to predict. Changes within the Eurozone could adversely affect the performance of the Market Measure and, consequently, the value of the notes. In addition, you will not obtain the benefit of any increase in the value of the euro against the U.S. dollar, which you would have received if you had owned the securities in the Market Measure during the term of your notes, although the level of the Market Measure may be adversely affected by general exchange rate movements in the market.
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You will have no rights of a holder of the securities represented by the Market Measure, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those securities.
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.
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%
-50.00%
$5.00
-50.00%
-20.00%
$8.00
-20.00%
-10.00%
$9.00
-10.00%
-6.00%
$9.40
-6.00%
-3.00%
$9.70
-3.00%
0.00%(1)
$11.30(2)
13.00%
2.00%
$11.30
13.00%
5.00%
$11.30
13.00%
10.00%
$11.30
13.00%
13.00%(3)
$11.30
13.00%
20.00%
$12.00
20.00%
30.00%
$13.00
30.00%
40.00%
$14.00
40.00%
50.00%
$15.00
50.00%
60.00%
$16.00
60.00%
(1) The hypothetical percentage change corresponds to the hypothetical Threshold Value.
(2) This amount represents the sum of the principal amount and the hypothetical Step Up Payment of $1.30.
(3) This hypothetical percentage change corresponds to the hypothetical Step Up Value.
(2) This amount represents the sum of the principal amount and the hypothetical Step Up Payment of $1.30.
(3) This hypothetical percentage change corresponds to the hypothetical Step Up Value.