Accelerated Return Notes® Linked to a Basket of Three Financial Sector Stocks
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%
$10.00
0.00%
5.00%
$11.50
15.00%
6.00%
$11.80(1)
18.00%
20.00%
$11.80
18.00%
30.00%
$11.80
18.00%
40.00%
$11.80
18.00%
50.00%
$11.80
18.00%
60.00%
$11.80
18.00%
(1) The Redemption Amount per unit cannot exceed the hypothetical Capped Value.
Issuer
BofA Finance LLC (“BofA Finance”)
Guarantor
Bank of America Corporation (“BAC”)
Principal Amount
$10.00 per unit
Term
Approximately 14 months
Market Measure
An approximately equally weighted basket of three financial sector stocks comprised of the common stocks of The Goldman Sachs Group, Inc. (NYSE symbol: “GS”), JPMorgan Chase & Co. (NYSE symbol: “JPM”) and Morgan Stanley (NYSE symbol: “MS”) (each a “Basket Stock”).
Payout Profile at Maturity
●
3-to-1 upside exposure to increases in the Basket, subject to the Capped Value
●
1-to-1 downside exposure to decreases in the Basket, with 100% of your principal at risk
Capped Value
[$11.60 to $12.00] per unit, a [16.00% to 20.00%] return over the principal amount, to be determined on the pricing date.
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:
●
Depending on the performance of the Basket as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal.
●
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.
●
Your investment return, if any, is limited to the return represented by the Capped Value and may be less than a comparable investment directly in the Basket Stocks.
●
The initial estimated value of the notes on the pricing date will be less than their public offering price.
●
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.
●
You will have no rights of a holder of the Basket Stocks, and you will not be entitled to receive shares or dividends or other distributions by the Underlying Companies.
●
The Basket Stocks are concentrated in one sector.
●
Adverse conditions in the financial sector may reduce your return on the notes.
●
Economic conditions have adversely impacted the stock prices of many companies in the financial services sector, and may do so during the term of the notes.
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.