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BANK OF AMERICA CORP DE

Date Filed : Aug 10, 2022

424B21form424b2.htm424B2

This pricing supplement, which is not complete and may be changed, relates to an effective Registration Statement under the Securities Act of 1933. This pricing supplement and the accompanying product supplement, prospectus supplement and prospectus are not an offer to sell these notes in any country or jurisdiction where such an offer would not be permitted.

Linked to the Least Performing of the iShares®Russell 1000 Growth ETF and the Nasdaq-100® Index

Maturity of approximately 2.25 years.
Payment on the Notes will depend on the individual performanceof the iShares® Russell 1000 Growth ETF and the Nasdaq-100®Index (each an “Underlying”).
300% upside exposure to increases in the value of theLeast Performing Underlying, subject to the Max Return of 37.20%.
1-to-1 downside exposure to decreases in the value of the LeastPerforming Underlying beyond a 10% decline with up to 90% of the principal at risk.
All payments on the Notes are subject to the credit risk of BofA Finance LLC (“BofA Finance”),as issuer of the Notes, and Bank of America Corporation (“BAC” or the “Guarantor”), as guarantor of the Notes.
No periodic interest payments.
The Capped Buffered Enhanced Return Notes linked to the Least Performing of the iShares®Russell 1000 Growth ETF and the Nasdaq-100® Index, due November15, 2024 (the “Notes”) are expected to price on August 12, 2022 and expected to issue on August 17, 2022.
The Notes will not be listed on any securities exchange.
CUSIP No. 09709U5X2.
 
 

The initial estimated value of the Notes as of thepricing date is expected to be between $920.00 and $990.00 per $1,000 in principal amount of Notes, which is less than the public offeringprice listed below. The actual value of your Notes at any time will reflect many factors and cannot be predicted with accuracy. See“Risk Factors” beginning on page PS-8 of this pricing supplement and “Structuring the Notes” on page PS-20 ofthis pricing supplement for additional information.

There are important differences between the Notesand a conventional debt security. Potential purchasers of the Notes should consider the information in “Risk Factors” beginningon page PS-8 of this pricing supplement, page PS-5 of the accompanying product supplement, page S-5 of the accompanying prospectus supplement,and page 7 of the accompanying prospectus.

None of the Securities and Exchange Commission (the“SEC”), any state securities commission, or any other regulatory body has approved or disapproved of these securities or determinedif this pricing supplement and the accompanying product supplement, prospectus supplement and prospectus is truthful or complete. Anyrepresentation to the contrary is a criminal offense.

  Public offering price Underwriting discount(1) Proceeds, before expenses, to BofA Finance
Per Note $1,000.00 $0.00 $1,000.00
Total      

 

(1) In addition to the underwriting discount above, if any, an affiliate of BofA Finance will pay a referral fee of up to $4.50 per $1,000 in principal amount of Notes in connection with the distribution of the Notes to other registered broker dealers.
 

The Notes and the related guarantee:

Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value

Selling Agent


Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

Terms of the Notes

The Notes provide you a leveragedreturn, subject to the Max Return, if the Ending Value of the Least Performing Underlying is greater than its Starting Value. If the EndingValue of the Least Performing Underlying is equal to or less than its StartingValue but greater than or equal to its Threshold Value, you will receive the principal amount of your Notes at maturity. If the EndingValue of the Least Performing Underlying is less than its Threshold Value, thereis full exposure to declines in the Least Performing Underlying beyond its ThresholdValue, and you will lose some or a significant portion of your investment in the Notes. Any payments on the Notes will be calculated basedon $1,000 in principal amount of Notes and will depend on the performance of the Underlyings, subject to our and BAC’s credit risk.

 

Issuer: BofA Finance
Guarantor: BAC
Denominations: The Notes will be issued in minimum denominations of $1,000 and whole multiples of $1,000 in excess thereof.
Term: Approximately 2.25 years.
Underlyings: The iShares® Russell 1000 Growth ETF (Bloomberg symbol: “IWF”) and the Nasdaq-100® Index (Bloomberg symbol: “NDX”), a price return index.
Pricing Date*: August 12, 2022
Issue Date*: August 17, 2022
Valuation Date*: November 12, 2024, subject to postponement as described under “Description of the Notes—Certain Terms of the Notes—Events Relating to Calculation Days” in the accompanying product supplement.
Maturity Date*: November 15, 2024
Starting Value: With respect to the IWF, its Closing Market Price on the pricing date. With respect to the NDX, its closing level on the pricing date.
Ending Value: With respect to the IWF, its Closing Market Price on the Valuation Date multiplied by its Price Multiplier. With respect to the NDX, its closing level on the Valuation Date.
Price Multiplier: With respect to the IWF, 1, subject to adjustment for certain events as described in “Description of the Notes — Anti-Dilution and Discontinuance Adjustments Relating to ETFs” beginning on page PS-27 of the accompanying product supplement.
Upside Participation Rate: 300%
Max Return: $1,372.00 per Note, which represents a return of 37.20% over the principal amount.
Threshold Value: With respect to each Underlying, 90% of its Starting Value.
Threshold Rate: 100%
Redemption Amount: The Redemption Amount per $1,000 in principal amount of Notes will be:
a) If the Ending Value of the Least Performing Underlying is greater than its Starting Value:
   
b) If the Ending Value of the Least Performing Underlying is equal to or less than its Starting Value but greater than or equal to its Threshold Value:
   
c) If the Ending Value of the Least Performing Underlying is less than its Threshold Value:
  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-2

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

   
  In this case, the Redemption Amount will be less than the principal amount and you could lose up to 90% of your principal amount.
Calculation Agent: BofA Securities, Inc. (“BofAS”), an affiliate of BofA Finance.
Selling Agent: BofAS
CUSIP: 09709U5X2
Underlying Return:

With respect to each Underlying,

Least Performing Underlying: The Underlying with the lowest Underlying Return.
Events of Default and Acceleration: If an Event of Default, as defined in the senior indenture relating to the Notes and in the section entitled “Description of Debt Securities—Events of Default and Rights of Acceleration” beginning on page 22 of the accompanying prospectus, with respect to the Notes occurs and is continuing, the amount payable to a holder of the Notes upon any acceleration permitted under the senior indenture will be equal to the amount described under the caption “Redemption Amount” above, calculated as though the date of acceleration were the Maturity Date of the Notes and as though the Valuation Date were the third trading day prior to the date of acceleration. In case of a default in the payment of the Notes, whether at their maturity or upon acceleration, the Notes will not bear a default interest rate.

 

*Subject tochange.

 
 

Any payments on the Notes depend on the credit riskof BofA Finance, as Issuer, and BAC, as Guarantor, and on the performance of the Underlyings. The economic terms of the Notes are basedon BAC’s internal funding rate, which is the rate it would pay to borrow funds through the issuance of market-linked notes, andthe economic terms of certain related hedging arrangements BAC’s affiliates enter into. BAC’s internal funding rate is typicallylower than the rate it would pay when it issues conventional fixed or floating rate debt securities. This difference in funding rate,as well as the underwriting discount, if any, the referral fee and the hedging related charges described below (see “Risk Factors”beginning on page PS-8), will reduce the economic terms of the Notes to you and the initial estimated value of the Notes. Due to thesefactors, the public offering price you pay to purchase the Notes will be greater than the initial estimated value of the Notes as of thepricing date.

 

The initial estimated value range of the Notes is setforth on the cover page of this pricing supplement. The final pricing supplement will set forth the initial estimated value of the Notesas of the pricing date. For more information about the initial estimated value and the structuring of the Notes, see “Risk Factors”beginning on page PS-8 and “Structuring the Notes” on page PS-20.

  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-3

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

Redemption Amount Determination

Onthe Maturity Date, you will receive a cash payment per $1,000 in principal amount of Notes determined as follows:

 

All payments described above are subjectto the credit risk of BofA Finance, as issuer, and BAC, as guarantor.

  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-4

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

Hypothetical Payout Profile and Examples of Payments at Maturity

Capped BufferedEnhanced Return Notes Table

The following table, graph and Redemption Amount CalculationExamples are for purposes of illustration only. They are based on hypothetical values and show hypothetical returns on theNotes. They illustrate the calculation of the Redemption Amount and the return on the Notes based on a hypothetical Starting Value of100 for the Least Performing Underlying, a hypothetical Threshold Value of 90 for the Least Performing Underlying, the Upside ParticipationRate of 300%, the Threshold Rate of 100%, the Max Return of $1,372.00 per $1,000 in principal amount of Notes and a range of hypotheticalEnding Values of the Least Performing Underlying. The actual amount you receive and the resulting return will depend on the actualStarting Values, Threshold Values and Ending Values of the Underlyings, and whether you hold the Notes to maturity. The followingexamples do not take into account any tax consequences from investing in the Notes.

 

For recent actual values of the Underlyings, see “TheUnderlyings” section below. The Ending Value of each Underlying will not include any income generated by dividends or other distributionspaid with respect to shares or units of that Underlying or on the securities included in that Underlying, as applicable. In addition,all payments on the Notes are subject to Issuer and Guarantor credit risk.

 

 

Ending Value of the Least Performing Underlying

 

 

Underlying Return of the Least Performing Underlying

 

 

Redemption Amount per Note

 

 

Return on the Notes

 

160.00 60.00% $1,372.00 37.20%
150.00 50.00% $1,372.00 37.20%
140.00 40.00% $1,372.00 37.20%
130.00 30.00% $1,372.00 37.20%
120.00 20.00% $1,372.00 37.20%
112.40 12.40% $1,372.00(1) 37.20%
110.00 10.00% $1,300.00 30.00%
105.00 5.00% $1,150.00 15.00%
102.00 2.00% $1,060.00 6.00%
100.00(2) 0.00% $1,000.00 0.00%
90.00(3) -10.00% $1,000.00 0.00%
89.00 -11.00% $990.00 -1.00%
80.00 -20.00% $900.00 -10.00%
70.00 -30.00% $800.00 -20.00%
50.00 -50.00% $600.00 -40.00%
0.00 -100.00% $100.00 -90.00%

 

 

(1) The Redemption Amount per Note cannot exceed the Max Return.
(2) The hypothetical Starting Value of 100 used in these examples has been chosen for illustrative purposes only and does not represent a likely Starting Value of any Underlying.
(3) This is the hypothetical Threshold Value of the Least Performing Underlying.
  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-5

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

Hypothetical Payout Profile and Examples of Payments at Maturity

This graph reflects the return on the Notes based onthe Upside Participation Rate of 300%, the Threshold Value of 90% of the Starting Value of the Least Performing Underlying, the ThresholdRate of 100% and the Max Return of $1,372.00 per $1,000 in principal amount of Notes. The green line reflects the return on the Notes,while the dotted gray line reflects the returns of a direct investment in the Least Performing Underlying, excluding dividends.

This graph has been prepared for purposes of illustrationonly.

 

RedemptionAmount Calculation Examples

Example 1

The Ending Value of the Least PerformingUnderlying is 115.00, or 115.00% of its Starting Value:

Starting Value of the Least Performing Underlying: 100.00  
Ending Value of the Least Performing Underlying: 115.00  
     

 

 

 

 
 

Example 2

The Ending Value of the Least PerformingUnderlying is 102.00, or 102.00% of its Starting Value:

Starting Value of the Least Performing Underlying: 100.00  
Ending Value of the Least Performing Underlying: 102.00  
     

 
 

Example 3

The Ending Value of the Least PerformingUnderlying is 95.00, or 95.00% of its Starting Value:

Starting Value of the Least Performing Underlying: 100.00  
Threshold Value of the Least Performing Underlying: 90.00  
Ending Value of the Least Performing Underlying: 95.00  
     

  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-6

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

 

Example 4

The Ending Value of the Least PerformingUnderlying is 50.00, or 50.00% of its Starting Value:

Starting Value of the Least Performing Underlying: 100.00  
Threshold Value of the Least Performing Underlying: 90.00  
Ending Value of the Least Performing Underlying: 50.00  
     

 
 
  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-7

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

Risk Factors

Your investment in the Notes entails significantrisks, many of which differ from those of a conventional debt security. Your decision to purchase the Notes should be made only aftercarefully considering the risks of an investment in the Notes, including those discussed below, with your advisors in light of your particularcircumstances. The Notes are not an appropriate investment for you if you are not knowledgeable about significant elements of the Notesor financial matters in general. You should carefully review the more detailed explanation of risks relating to the Notes in the “RiskFactors” sections beginning on page PS-5 of the accompanying product supplement, page S-5 of the accompanying prospectus supplementand page 7 of the accompanying prospectus, each as identified on page PS-24 below.

 

Structure-related Risks

 

Your investment may result in a loss; there is no guaranteed return of principal. There is no fixed principal repayment amounton the Notes at maturity. If the Ending Value of any Underlying is less than its Threshold Value, at maturity, your investmentwill be subject to 1:1 downside exposure to decreases in the value of the Least Performing Underlying and you will lose 1% of the principalamount for each 1% that the Ending Value of the Least Performing Underlying is less than its Threshold Value. In that case, you will losesome or a significant portion of your investment in the Notes.
The return on the Notes will be limited to the Max Return. The return on the Notes will not exceed the Max Return, regardlessof the performance of the Underlying.
The Notes do not bear interest. Unlike a conventional debt security, no interest payments will be paid over the term of theNotes, regardless of the extent to which the Ending Value of the Least Performing Underlying exceeds its Starting Value or Threshold Value.
Your return on the Notes may be less than the yield on a conventional debt security of comparable maturity. Any return thatyou receive on the Notes may be less than the return you would earn if you purchased a conventional debt security with the same MaturityDate. As a result, your investment in the Notes may not reflect the full opportunity cost to you when you consider factors, such as inflation,that affect the time value of money.
The Redemption Amount will not reflect changes in the values of the Underlyings other than on the Valuation Date. Changes inthe values of the Underlyings during the term of the Notes other than on the Valuation Date will not be reflected in the calculation ofthe Redemption Amount. No other values of the Underlyings will be taken into account. Notwithstanding the foregoing, investors shouldgenerally be aware of the performance of the Underlyings while holding the Notes. As a result, you will receive less than the principalamount at maturity even if the value of each Underlying has increased at certain times during the term of the Notes before the Least PerformingUnderlying decreases to a value on the Valuation Date that is less than its Threshold Value.
Because the Notes are linked to the least performing (and not the average performance) of the Underlyings, you may not receiveany return on the Notes and may lose some or a significant portion of your investment in the Notes even if the Ending Value of one Underlyingis greater than or equal to its Threshold Value. Your Notes are linked to the least performing of the Underlyings, and a change inthe value of one Underlying may not correlate with changes in the value of the other Underlying(s). The Notes are not linked to a basketcomposed of the Underlyings, where the depreciation in the value of one Underlying could be offset to some extent by the appreciationin the value of the other Underlying(s). In the case of the Notes, the individual performance of each Underlying would not be combined,and the depreciation in the value of one Underlying would not be offset by any appreciation in the value of the other Underlying(s). Evenif the Ending Value of an Underlying is at or above its Threshold Value, you will lose some or a significant portion of your investmentin the Notes if the Ending Value of the Least Performing Underlying is below its Threshold Value.
Any payments on the Notes are subject to our credit risk and the credit risk of the Guarantor, and any actual or perceived changesin our or the Guarantor’s creditworthiness are expected to affect the value of the Notes. The Notes are our senior unsecureddebt securities. Any payment on the Notes will be fully and unconditionally guaranteed by the Guarantor. The Notes are not guaranteedby any entity other than the Guarantor. As a result, your receipt of the Redemption Amount at maturity will be dependent upon our abilityand the ability of the Guarantor to repay our respective obligations under the Notes on the Maturity Date, regardless of the Ending Valueof the Least Performing Underlying as compared to its Starting Value.

 

In addition, our credit ratings and the credit ratings of the Guarantor are assessments by ratings agencies of our respective abilitiesto pay our obligations. Consequently, our or the Guarantor’s perceived creditworthiness and actual or anticipated decreases in ouror the Guarantor’s credit ratings or increases in the spread between the yield on our respective securities and the yield on U.S.Treasury securities (the “credit spread”) prior to the Maturity Date may adversely affect the market value of the Notes. However,because your return on the Notes depends upon factors in addition to our ability and the ability of the Guarantor to pay our respectiveobligations, such as the values of the Underlyings, an improvement in our or the Guarantor’s credit ratings will not reduce theother investment risks related to the Notes.
We are a finance subsidiary and, as such, have no independent assets, operations, or revenues. We are a finance subsidiaryof the Guarantor, have no operations other than those related to the issuance, administration and repayment of our debt securities thatare guaranteed by the Guarantor, and are dependent upon the Guarantor and/or its other subsidiaries to meet our obligations under theNotes in the ordinary course. Therefore, our ability to make payments on the Notes may be limited.

 

Valuation- and Market-relatedRisks

 

The public offering price you pay for the Notes will exceed their initial estimated value. The range of initial estimated valuesof the Notes that is provided on the cover page of this preliminary pricing supplement, and the initial estimated value as of the pricingdate that will be provided in the final pricing supplement, are each estimates only, determined as of a particular point in time by referenceto our and our affiliates’
  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-8

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

pricing models. These pricing models considercertain assumptions and variables, including our credit spreads and those of the Guarantor, the Guarantor’s internal funding rate,mid-market terms on hedging transactions, expectations on interest rates, dividends and volatility, price-sensitivity analysis, and theexpected term of the Notes.  These pricing models rely in part on certain forecasts about future events, which may prove to be incorrect.If you attempt to sell the Notes prior to maturity, their market value may be lower than the price you paid for them and lower than theirinitial estimated value. This is due to, among other things, changes in the values of the Underlyings, changes in the Guarantor’sinternal funding rate, and the inclusion in the public offering price of the underwriting discount, if any, the referral fee and the hedgingrelated charges, all as further described in “Structuring the Notes” below. These factors, together with various credit, marketand economic factors over the term of the Notes, are expected to reduce the price at which you may be able to sell the Notes in any secondarymarket and will affect the value of the Notes in complex and unpredictable ways.

The initial estimated value does not represent a minimum or maximum price at which we, BAC, BofAS or any of our other affiliateswould be willing to purchase your Notes in any secondary market (if any exists) at any time. The value of your Notes at any time afterissuance will vary based on many factors that cannot be predicted with accuracy, including the performance of the Underlyings, our andBAC’s creditworthiness and changes in market conditions.
We cannot assure you that a trading market for your Notes will ever develop or be maintained. We will not list the Notes onany securities exchange. We cannot predict how the Notes will trade in any secondary market or whether that market will be liquid or illiquid.

 

Conflict-related Risks

 

Trading and hedging activities by us, the Guarantor and any of our other affiliates, including BofAS, may create conflicts of interestwith you and may affect your return on the Notes and their market value. We, the Guarantor or one or more of our other affiliates,including BofAS, may buy or sell shares or units of the Underlyings or the securities held by or included in the Underlyings, as applicable,or futures or options contracts or exchange traded instruments on the Underlyings or those securities, or other instruments whose valueis derived from the Underlyings or those securities. While we, the Guarantor or one or more of our other affiliates, including BofAS,may from time to time own shares or units of the Underlyings or the securities represented by the Underlyings, as applicable, except tothe extent that BAC’s common stock may be included in the Underlyings, we, the Guarantor and our other affiliates, including BofAS,do not control any company included in the Underlyings, and have not verified any disclosure made by any other company. We, the Guarantoror one or more of our other affiliates, including BofAS, may execute such purchases or sales for our own or their own accounts, for businessreasons, or in connection with hedging our obligations under the Notes. These transactions may present a conflict of interest betweenyour interest in the Notes and the interests we, the Guarantor and our other affiliates, including BofAS, may have in our or their proprietaryaccounts, in facilitating transactions, including block trades, for our or their other customers, and in accounts under our or their management.These transactions may adversely affect the values of the Underlyings in a manner that could be adverse to your investment in the Notes.On or before the pricing date, any purchases or sales by us, the Guarantor or our other affiliates, including BofAS or others on our ortheir behalf (including those for the purpose of hedging some or all of our anticipated exposure in connection with the Notes), may affectthe values of the Underlyings. Consequently, the values of the Underlyings may change subsequent to the pricing date, which may adverselyaffect the market value of the Notes.

 

We, the Guarantor or one or more of our other affiliates, including BofAS, also expect to engage in hedging activities that could affectthe values of the Underlyings on the pricing date. In addition, these hedging activities, including the unwinding of a hedge, may decreasethe market value of your Notes prior to maturity, and may affect the amounts to be paid on the Notes. We, the Guarantor or one or moreof our other affiliates, including BofAS, may purchase or otherwise acquire a long or short position in the Notes and may hold or resellthe Notes. For example, BofAS may enter into these transactions in connection with any market making activities in which it engages. Wecannot assure you that these activities will not adversely affect the values of the Underlyings, the market value of your Notes priorto maturity or the amounts payable on the Notes.
There may be potential conflicts of interest involving the calculation agent, which is an affiliate of ours. We have the rightto appoint and remove the calculation agent. One of our affiliates will be the calculation agent for the Notes and, as such, will makea variety of determinations relating to the Notes, including the amounts that will be paid on the Notes. Under some circumstances, theseduties could result in a conflict of interest between its status as our affiliate and its responsibilities as calculation agent.

 

Underlying-related Risks

 

The Notes are subject to risks associated with foreign securities markets. The NDX includes certain foreign equity securities.You should be aware that investments in securities linked to the value of foreign equity securities involve particular risks. The foreignsecurities markets comprising the NDX may have less liquidity and may be more volatile than U.S. or other securities markets and marketdevelopments may affect foreign markets differently from U.S. or other securities markets. Direct or indirect government interventionto stabilize these foreign securities markets, as well as cross-shareholdings in foreign companies, may affect trading prices and volumesin these markets. Also, there is generally less publicly available information about foreign companies than about those U.S. companiesthat are subject to the reporting requirements of the SEC, and foreign companies are subject to accounting, auditing and financial reportingstandards and requirements that differ from those applicable to U.S. reporting companies. Prices of securities in foreign countries aresubject to political, economic, financial and social factors that apply in those geographical regions. These factors, which could negativelyaffect those securities markets, include the possibility of recent or future changes in a foreign government’s economic and fiscalpolicies, the possible imposition of, or changes in, currency exchange laws or other laws or restrictions applicable to foreign companiesor investments in foreign equity securities and the possibility of fluctuations in the rate of exchange between currencies, the possibilityof outbreaks of hostility and political instability and the possibility of natural disaster or adverse public health developments in theregion. Moreover, foreign economies may differ favorably or unfavorably from the U.S. economy in important respects such as growth ofgross national product, rate of inflation, capital reinvestment, resources and self-sufficiency.
There is no assurance that the strategy employed by the IWF will be successful. The IWF seeks totrack the investment results, before fees and expenses, of an index composed of large-capitalization U.S. equities that exhibit growthcharacteristics, which is currently the Russell 1000®
  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-9

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

Growth Index. The Russell1000® Growth Index measures the capitalization-weighted price performance of the stocks included in the Russell 1000®Index that are determined by FTSE Russell to be growth oriented, with higher price-to-book ratios and higher forecasted growth values.A “growth” investment strategy is premised on the goal of investing in stocks of companies whose earnings are expected toincrease at an above-average rate compared to their industry sector or the overall market. However, the growth characteristics referencedby the Russell 1000® Growth Index may not be accurate predictors of growth stocks, and there is no guarantee that growthstocks will appreciate. In addition, the Russell 1000® Growth Index’s selection methodology includes a significantbias against stocks with strong value characteristics, and stocks with strong value characteristics may outperform stocks with weak valuecharacteristics. There is no assurance that the IWF will outperform any other index, exchange-traded fund or strategy that tracks U.S.stocks selected using other criteria and may underperform the Russell 1000® Index as a whole. It is possible that the stockselection methodology of the Russell 1000® Growth Index will adversely affect its return and, consequently, the level ofthe Russell 1000® Growth Index, the price of one share of the IWF and the value and return of the Notes.

The anti-dilution adjustments will be limited. The calculation agent may adjust the Price Multiplier of the IWF and other termsof the Notes to reflect certain actions by the IWF, as described in the section “Description of the Notes—Anti-Dilution andDiscontinuance Adjustments Relating to ETFs” in the accompanying product supplement. The calculation agent will not be requiredto make an adjustment for every event that may affect the IWF and will have broad discretion to determine whether and to what extent anadjustment is required.
The publisher or the sponsor or investment advisor of an Underlying may adjust that Underlying in a way that affects its values,and the publisher or the sponsor or investment advisor has no obligation to consider your interests. The publisher or the sponsoror investment advisor of an Underlying can add, delete, or substitute the components included in that Underlying or make other methodologicalchanges that could change its value. Any of these actions could adversely affect the value of your Notes.

 

Tax-related Risks

 

The U.S. federal income tax consequences of an investment in the Notes are uncertain, and may be adverse to a holder of the Notes.No statutory, judicial, or administrative authority directly addresses the characterization of the Notes or securities similar tothe Notes for U.S. federal income tax purposes. As a result, significant aspects of the U.S. federal income tax consequences of an investmentin the Notes are not certain. Under the terms of the Notes, you will have agreed with us to treat the Notes as single financial contracts,as described below under “U.S. Federal Income Tax Summary—General.” If the Internal Revenue Service (the “IRS”)were successful in asserting an alternative characterization for the Notes, the timing and character of gain or loss with respect to theNotes may differ. No ruling will be requested from the IRS with respect to the Notes and no assurance can be given that the IRS will agreewith the statements made in the section entitled “U.S. Federal Income Tax Summary.” You are urged to consult with yourown tax advisor regarding all aspects of the U.S. federal income tax consequences of investing in the Notes.
  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-10

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

The Underlyings

All disclosures contained in this pricing supplementregarding the Underlyings, including, without limitation, their make-up, method of calculation, and changes in their components, havebeen derived from publicly available sources. The information reflects the policies of, and is subject to change by, the investment advisorof the IWF and the sponsor of the NDX (collectively, the “Underlying Sponsors”). The Underlying Sponsors, which license thecopyright and all other rights to the respective Underlyings, have no obligation to continue to publish, and may discontinue publicationof, the Underlyings. The consequences of any Underlying Sponsor discontinuing publication of the applicable Underlying are discussed in“Description of the Notes — Discontinuance of an Index” and “Description of the Notes — Anti-Dilution andDiscontinuance Adjustments Relating to ETFs — Discontinuance of or Material Change to an ETF” in the accompanying productsupplement. None of us, the Guarantor, the calculation agent, or BofAS accepts any responsibility for the calculation, maintenance orpublication of any Underlying or any successor underlying. None of us, the Guarantor, BofAS or any of our other affiliates makes any representationto you as to the future performance of the Underlyings. You should make your own investigation into the Underlyings.

 

The iShares® Russell 1000 GrowthETF

The IWF is an exchange-traded fundof iShares® Trust, a registered investment company, that seeks to track the investment results, before fees and expenses,of an index composed of large-capitalization U.S. equities that exhibit growth characteristics, which we refer to as the Underlying Indexwith respect to the IWF. The Underlying Index for the IWF is currently the Russell 1000® Growth Index. The Russell 1000®Growth Index measures the capitalization-weighted price performance of the stocks included in the Russell 1000® Index thatare determined by FTSE Russell to be growth oriented, with higher price-to-book ratios and higher forecasted growth values. The sharesof the iShares® Russell 1000 Growth ETF trade on the NYSE Arca under the symbol “IWF”.

 

The shares of the IWF are registeredunder the Exchange Act. Accordingly, information filed with the SEC relating to the IWF, including its periodic financial reports, maybe found on the SEC website.

 

The Russell 1000® GrowthIndex

All information contained in thispricing supplement regarding the Russell 1000® Growth Index (the “Growth Index”), including, without limitation,its make-up, method of calculation and changes in its components, has been derived from publicly available information, without independentverification. This information reflects the policies of, and is subject to change by, FTSE Russell. The Growth Index is calculated, maintainedand published by FTSE Russell. FTSE Russell has no obligation to publish, and may discontinue the publication of, the Growth Index. TheGrowth Index is reported by Bloomberg under the ticker symbol “RLG.”

 

The Growth Index measures the capitalization-weightedprice performance of the stocks included in the Russell 1000® Index (each, a “Russell 1000 Component Stock”and collectively, the “Russell 1000 Component Stocks”) that are determined by FTSE Russell to be growth oriented, with higherprice-to-book ratios and higher forecasted growth values. The Russell 1000® Index measures the capitalization-weightedprice performance of 1,000 U.S. large-capitalization stocks listed on eligible U.S. exchanges.

 

FTSE Russell uses a “non-linearprobability” method to assign stocks to the Growth Index and the Russell 1000® Value Index (the “Value Index”),an index that measures the capitalization-weighted price performance of the Russell 1000 Component Stocks determined by FTSE Russell tobe value oriented, with lower price-to-book ratios and lower forecasted growth values. The term “probability” is used to indicatethe degree of certainty that a stock is value or growth based on its relative book-to-price (B/P) ratio, I/B/E/S forecast medium-termgrowth (2 year) and sales per share historical growth (5 year). This method allows stocks to be represented as having both growth andvalue characteristics, while preserving the additive nature of the indices.

 

The process for assigning growthand value weights is applied separately to the Russell 1000 Component Stocks. The Russell 1000 Component Stocks are ranked by their adjustedbook-to-price ratio (B/P), their I/B/E/S forecast medium-term growth (2 year) and sales per share historical growth (5 year). These rankingsare converted to standardized units, where the value variable represents 50% of the score and the two growth variables represent the remaining50%. They are then combined to produce a Composite Value Score (“CVS”).

 

The Russell 1000 Component Stocksare then ranked by their CVS, and a probability algorithm is applied to the CVS distribution to assign growth and value weights to eachstock. In general, a stock with a lower CVS is considered growth, a stock with a higher CVS is considered value, and a stock with a CVSin the middle range is considered to have both growth and value characteristics, and is weighted proportionately in the growth and valueindices. Stocks are always fully represented by the combination of their growth and value weights (e.g., a stock that is given a 20% weightin the Value Index will have an 80% weight in the Growth Index).

 

Stock A, in the figure below, isa security with 20% of its available shares assigned to the Value Index and the remaining 80% assigned to the Growth Index. Hence, thesum of a stock’s market capitalization in the Value Index and the Growth Index will always equal its market capitalization in theRussell 1000® Index.

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In the figure above, the quartilebreaks are calculated such that approximately 25% of the available market capitalization lies in each quartile. Stocks at the median aredivided 50% in each of the Value Index and the Growth Index. Stocks below the first quartile are 100% in the Growth Index. Stocks abovethe third quartile are 100% in the Value Index. Stocks falling between the first and third quartile breaks are in both the Value Indexand the Growth Index to varying degrees, depending on how far they are above or below the median and how close they are to the first orthird quartile breaks.

 

Roughly 70% of the available marketcapitalization is classified as all growth or all value. The remaining 30% have some portion of their market value in either the ValueIndex or the Growth Index, depending on their relative distance from the median value score. Note that there is a small position cutoffrule. If a stock’s weight is more than 95% in one index, its weight is increased to 100% in that index.

 

In an effort to mitigate unnecessaryturnover, FTSE Russell implements a banding methodology at the CVS level of the growth and value style algorithm. If a company’sCVS change from the previous year is greater than or equal to +/- 0.10 and if the company remains in the same core index (i.e., the Russell1000® Index), then the CVS remains unchanged during the next reconstitution process. Keeping the CVS static for these companies doesnot mean the probability (growth/value) will remain unchanged in all cases due to the relation of a CVS score to the overall index. However,this banding methodology is intended to reduce turnover caused by smaller, less meaningful movements while continuing to allow the larger,more meaningful changes to occur, signaling a true change in a company’s relation to the market.

 

In calculating growth and valueweights, stocks with missing or negative values for B/P, or missing values for I/B/E/S growth, or missing sales per share historical growth(6 years of quarterly numbers are required), are allocated by using the mean value score of the base index (the Russell 1000® Index),the Russell Global Sectors (ICB) industry, subsector or sector group into which the company falls. Each missing (or negative B/P) variableis substituted with the industry, subsector or sector group independently. An industry must have five members or the substitution revertsto the subsector, and so forth to the sector. In addition, a weighted value score is calculated for securities with low analyst coveragefor I/B/E/S medium-term growth. For securities with coverage by a single analyst, 2/3 of the industry, subsector, or sector group valuescore is weighted with 1/3 the security’s independent value score. For those securities with coverage by two analysts, 2/3 of theindependent security’s value score is used and only 1/3 of the industry, subsector, or sector group is weighted. For those securitieswith at least three analysts contributing to the I/B/E/S medium-term growth, 100% of the independent security’s value score is used.

 

Selection of Stocks Comprising the GrowthIndex

Each company eligible for inclusion in the GrowthIndex must be classified as a U.S. company under FTSE Russell’s country-assignment methodology. If a company is incorporated, hasa stated headquarters location, and trades in the same country (American Depositary Receipts and American Depositary Shares are not eligible),then the company is assigned to its country of incorporation. If any of the three factors are not the same, FTSE Russell defines threeHome Country Indicators (“HCIs”): country of incorporation, country of headquarters, and country of the most liquid exchange(as defined by a two-year average daily dollar trading volume) from all exchanges within a country. Using the HCIs, FTSE Russell comparesthe primary location of the company’s assets with the three HCIs. If the primary location of its assets matches any of the HCIs,then the company is assigned to the primary location of its assets. If there is insufficient information to determine the country in whichthe company’s assets are primarily located, FTSE Russell will use the country from which the company’s revenues are primarilyderived for the comparison with the three HCIs in a similar manner. FTSE Russell uses the average of two years of assets or revenues datato reduce potential turnover. If conclusive country details cannot be derived from assets or revenues data, FTSE Russell will assign thecompany to the country of its headquarters, which is defined as the address of the company’s principal executive offices, unlessthat country is a Benefit Driven Incorporation (“BDI”) country, in which case the company will be assigned to the countryof its most liquid stock exchange. BDI countries include: Anguilla, Antigua and Barbuda, Bahamas, Barbados, Belize, Bermuda, Bonaire,British Virgin Islands, Cayman Islands, Channel Islands, Cook Islands, Curacao, Faroe Islands, Gibraltar, Guernsey, Isle of Man, Jersey,Liberia, Marshall Islands, Panama, Saba, Sint Eustatius, Sint Maarten, and Turks and Caicos Islands. For any companies incorporated orheadquartered in a U.S. territory, including Puerto Rico, Guam, and U.S. Virgin Islands, a U.S. HCI is assigned.

 

All securities eligible for inclusion in the Growth Index must trade on a major U.S. exchange. Stocks must have a closing price at or above $1.00 on their primary exchangeon the last trading day in May to be eligible for inclusion during annual reconstitution. However, in order to reduce unnecessary turnover,if an existing member’s closing price is less than $1.00 on the last day of May, it will be considered eligible if the average ofthe

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daily closing prices (from its primary exchange) duringthe month of May is equal to or greater than $1.00. Initial public offerings are added each quarter and must have a closing price at orabove $1.00 on the last day of their eligibility period in order to qualify for index inclusion. If an existing stock does not trade onthe “rank day” (typically the last trading day in May but a confirmed timetable is announced each spring) but does have aclosing price at or above $1.00 on another eligible U.S. exchange, that stock will be eligible for inclusion.

 

An important criterion used to determine the list ofsecurities eligible for the Growth Index is total market capitalization, which is defined as the market price asof the last trading day in May for those securities being considered at annual reconstitution times the total number of shares outstanding.Where applicable, common stock, non-restricted exchangeable shares and partnership units/membership interests are used to determine marketcapitalization. Any other form of shares such as preferred stock, convertible preferred stock, redeemable shares, participating preferredstock, warrants and rights, installment receipts or trust receipts, are excluded from the calculation. If multiple share classes of commonstock exist, they are combined. In cases where the common stock share classes act independently of each other (e.g., tracking stocks),each class is considered for inclusion separately. If multiple share classes exist, the pricing vehicle will be designated as the shareclass with the highest two-year trading volume as of the rank day in May.

 

Companies with a total market capitalization of lessthan $30 million are not eligible for the Growth Index. Similarly, companies with only 5% or less of their sharesavailable in the marketplace are not eligible for the Growth Index. Royalty trusts, limited liability companies,closed-end investment companies (companies that are required to report Acquired Fund Fees and Expenses, as defined by the SEC, includingbusiness development companies), blank check companies, special purpose acquisition companies, and limited partnerships are also ineligiblefor inclusion. Bulletin board, pink sheets, and over-the-counter traded securities are not eligible for inclusion. Exchange traded fundsand mutual funds are also excluded.

 

Annual reconstitution is a process by which theGrowth Index is completely rebuilt. Based on closing levels of the company’s common stock on its primary exchangeon the rank day of May of each year, FTSE Russell reconstitutes the composition of the Growth Index using the thenexisting market capitalizations of eligible companies. Reconstitution of the Growth Index occurs on the last Fridayin June or, when the last Friday in June is the 29th or 30th, reconstitution occurs on the prior Friday. In addition, FTSE Russell addsinitial public offerings to the Growth Index on a quarterly basis based on total market capitalization ranking withinthe market-adjusted capitalization breaks established during the most recent reconstitution. After membership is determined, a security’sshares are adjusted to include only those shares available to the public. This is often referred to as “free float.” The purposeof the adjustment is to exclude from market calculations the capitalization that is not available for purchase and is not part of theinvestable opportunity set.

 

Historical Performance of the IWF

The following graph sets forth the daily historicalperformance of the IWF in the period from January 3, 2017 through August 5, 2022. We obtained this historical data from Bloomberg L.P.We have not independently verified the accuracy or completeness of the information obtained from Bloomberg L.P. The horizontal line inthe graph represents the IWF’s hypothetical Threshold Value of $223.89 (rounded to two decimal places), which is 90% of the IWF’shypothetical Starting Value of $248.77, which was its Closing Market Price on August 5, 2022. The actual Starting Value and ThresholdValue will be determined on the pricing date.

 

 

This historical data on the IWF is not necessarily indicativeof the future performance of the IWF or what the value of the Notes may be. Any historical upward or downward trend in the Closing MarketPrice of the IWF during any period set forth above is not an indication that the Closing Market Price of the IWF is more or less likelyto increase or decrease at any time over the term of the Notes.

 

Before investing in the Notes, you should consult publiclyavailable sources for the Closing Market Prices and trading pattern of the IWF.

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The Nasdaq-100®Index

The NDX is intended to measure the performance of the100 largest domestic and international non-financial securities listed on The Nasdaq Stock Market ("NASDAQ") based on marketcapitalization. The NDX reflects companies across major industry groups including computer hardware and software, telecommunications,retail/wholesale trade and biotechnology. It does not contain securities of financial companies including investment companies.

 

The NDX began trading on January 31, 1985 at a basevalue of 125.00. The NDX is calculated and published by Nasdaq, Inc. In administering the NDX, Nasdaq, Inc. will exercise reasonable discretionas it deems appropriate.

 

Underlying Stock Eligibility Criteria

NDX eligibility is limited to specific security typesonly. The security types eligible for the NDX include foreign or domestic common stocks, ordinary shares, ADRs and tracking stocks. Securitytypes not included in the NDX are closed-end funds, convertible debt securities, exchange traded funds, limited liability companies, limitedpartnership interests, preferred stocks, rights, shares or units of beneficial interest, warrants, units, and other derivative securities.The NDX does not contain securities of investment companies. For purposes of the NDX eligibility criteria, if the security is a depositaryreceipt representing a security of a non-U.S. issuer, then references to the “issuer” are references to the issuer of theunderlying security.

 

Initial Eligibility Criteria

To be eligible for initial inclusion in the NDX, a securitymust be listed on NASDAQ and meet the following criteria:

the security’s U.S. listing must be exclusivelyon the Nasdaq Global Select Market or the Nasdaq Global Market (unless the security was dually listed on another U.S. market prior toJanuary 1, 2004 and has continuously maintained such listing);
the security must be of a non-financial company;
the security may not be issued by an issuer currentlyin bankruptcy proceedings;
the security must have a minimum three-month averagedaily trading volume of at least 200,000 shares;
if the issuer of the security is organized under thelaws of a jurisdiction outside the U.S., then such security must have listed options on a recognized options market in the U.S. or beeligible for listed-options trading on a recognized options market in the U.S.;
the issuer of the security may not have entered intoa definitive agreement or other arrangement which would likely result in the security no longer being eligible for inclusion in the NDX;
the issuer of the security may not have annual financialstatements with an audit opinion that is currently withdrawn; and
the issuer of the security must have “seasoned”on NASDAQ, the New York Stock Exchange or NYSE Amex. Generally, a company is considered to be seasoned if it has been listed on a marketfor at least three full months (excluding the first month of initial listing).

 

Continued Eligibility Criteria

Inaddition, to be eligible for continued inclusion in the NDX, the following criteria apply:

the security’s U.S. listing must be exclusivelyon the Nasdaq Global Select Market or the Nasdaq Global Market;
the security must be of a non-financial company;
the security may not be issued by an issuer currentlyin bankruptcy proceedings;
the security must have a minimum three-month averagedaily trading volume of at least 200,000 shares;
if the issuer of the security is organized under thelaws of a jurisdiction outside the U.S., then such security must have listed options on a recognized options market in the U.S. or beeligible for listed-options trading on a recognized options market in the U.S. (measured annually during the ranking review process);
the security must have an adjusted market capitalizationequal to or exceeding 0.10% of the aggregate adjusted market capitalization of the NDX at each month-end. In the event a company doesnot meet this criterion for two consecutive month-ends, it will be removed from the NDX effective after the close of trading on the thirdFriday of the following month; and
the issuer of the security may not have annual financialstatements with an audit opinion that is currently withdrawn.

 

Computation of the NDX

Thevalue of the NDX equals the aggregate value of the NDX share weights (the “NDX Shares”) of each of the NDX securities multipliedby each such security’s last sale price (last sale price refers to the last sale price on NASDAQ), and divided by the divisor ofthe NDX. If trading in an NDX security

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is halted while the market is open, the last tradedprice for that security is used for all NDX computations until trading resumes. If trading is halted before the market is open, the previousday’s last sale price is used. The formula for determining the NDX value is as follows:

 

 

The NDX is ordinarily calculated without regard to cashdividends on NDX securities. The NDX is calculated during the trading day and is disseminated once per second from 09:30:01 to 17:16:00ET. The closing level of the NDX may change up until 17:15:00 ET due to corrections to the last sale price of the NDX securities. Theofficial closing value of the NDX is ordinarily disseminated at 17:16:00 ET.

 

NDX Maintenance

 

Changes to NDX Constituents

Changes to the NDX constituents may be made during theannual ranking review. In addition, if at any time during the year other than the annual review, it is determined that an NDX securityissuer no longer meets the criteria for continued inclusion in the NDX, or is otherwise determined to have become ineligible for continuedinclusion in the NDX, it is replaced with the largest market capitalization issuer not currently in the NDX that meets the applicableeligibility criteria for initial inclusion in the NDX.

 

Ordinarily, a security will be removed from the NDXat its last sale price. However, if at the time of its removal the NDX security is halted from trading on its primary listing market andan official closing price cannot readily be determined, the NDX security may, in Nasdaq, Inc.’s discretion, be removed at a priceof $0.00000001 (“zero price”). This zero price will be applied to the NDX security after the close of the market but priorto the time the official closing value of the NDX is disseminated.

 

Divisor Adjustments

The divisor is adjusted to ensure that changes in theNDX constituents either by corporate actions (that adjust either the price or shares of an NDX security) or NDX participation outsideof trading hours do not affect the value of the NDX. All divisor changes occur after the close of the applicable index security markets.

 

Quarterly NDX Rebalancing

The NDX will be rebalanced on a quarterly basis if itis determined that (1) the current weight of the single NDX security with the largest market capitalization is greater than 24.0% of theNDX or (2) the collective weight of those securities whose individual current weights are in excess of 4.5% exceeds 48.0% of the NDX.In addition, a “special rebalancing” of the NDX may be conducted at any time if Nasdaq, Inc. determines it necessary to maintainthe integrity and continuity of the NDX. If either one or both of the above weight distribution conditions are met upon quarterly review,or Nasdaq, Inc. determines that a special rebalancing is necessary, a weight rebalancing will be performed.

 

If the first weight distribution condition is met andthe current weight of the single NDX security with the largest market capitalization is greater than 24.0%, then the weights of all securitieswith current weights greater than 1.0% (“large securities”) will be scaled down proportionately toward 1.0% until the adjustedweight of the single largest NDX security reaches 20.0%.

 

If the second weight distribution condition is met andthe collective weight of those securities whose individual current weights are in excess of 4.5% (or adjusted weights in accordance withthe previous step, if applicable) exceeds 48.0% of the NDX, then the weights of all such large securities in that group will be scaleddown proportionately toward 1.0% until their collective weight, so adjusted, is equal to 40.0%.

 

The aggregate weight reduction among the large securitiesresulting from either or both of the rebalancing steps above will then be redistributed to those securities with weightings of less than1.0% (“small securities”) in the following manner. In the first iteration, the weight of the largest small security will bescaled upwards by a factor which sets it equal to the average NDX weight of 1.0%. The weights of each of the smaller remaining small securitieswill be scaled up by the same factor reduced in relation to each security’s relative ranking among the small securities such thatthe smaller the NDX security in the ranking, the less its weight will be scaled upward. This is intended to reduce the market impact ofthe weight rebalancing on the smallest component securities in the NDX.

 

In the second iteration of the small security rebalancing,the weight of the second largest small security, already adjusted in the first iteration, will be scaled upwards by a factor which setsit equal to the average NDX weight of 1.0%. The weights of each of the smaller remaining small securities will be scaled up by this samefactor reduced in relation to each security’s relative ranking among the small securities such that, once again, the smaller thesecurity in the ranking, the less its weight will be scaled upward. Additional iterations will be performed until the accumulated increasein weight among the small securities equals the aggregate weight reduction among the large securities that resulted from the rebalancingin accordance with the two weight distribution conditions discussed above.

 

Finally, to complete the rebalancing process, once thefinal weighting percentages for each NDX security have been set, the NDX Shares will be determined anew based upon the last sale pricesand aggregate capitalization of the NDX at the close of trading on the last calendar day in February, May, August and November. Changesto the NDX Shares will be made effective after the close of trading on the third Friday in March, June,

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September and December, and an adjustment to the divisoris made to ensure continuity of the NDX. Ordinarily, new rebalanced NDX Shares will be determined by applying the above procedures tothe current NDX Shares. However, Nasdaq, Inc. may, from time to time, determine rebalanced weights, if necessary, by applying the aboveprocedure to the actual current market capitalization of the NDX components. In such instances, Nasdaq, Inc. would announce the differentbasis for rebalancing prior to its implementation.

 

During the quarterly rebalancing, data is cutoff asof the previous month end and no changes are made to the NDX from that cutoff until the quarterly index share change effective date, exceptin the case of changes due to corporate actions with an ex-date.

 

Adjustments for Corporate Actions

Changes in the price and/or NDX Shares driven by corporateevents such as stock dividends, splits, and certain spin-offs and rights issuances will be adjusted on the ex-date. If the change in totalshares outstanding arising from other corporate actions is greater than or equal to 10.0%, the change will be made as soon as practicable.Otherwise, if the change in total shares outstanding is less than 10.0%, then all such changes are accumulated and made effective at onetime on a quarterly basis after the close of trading on the third Friday in each of March, June, September, and December. The NDX Sharesare derived from the security’s total shares outstanding. The NDX Shares are adjusted by the same percentage amount by which thetotal shares outstanding have changed.

 

Historical Performance of the NDX

The following graph sets forth the daily historicalperformance of the NDX in the period from January 3, 2017 through August 5, 2022. We obtained this historical data from Bloomberg L.P.We have not independently verified the accuracy or completeness of the information obtained from Bloomberg L.P. The horizontal line inthe graph represents the NDX’s hypothetical Threshold Value of 11,886.92 (rounded to two decimal places), which is 90% of the NDX’shypothetical Starting Value of 13,207.69, which was its closing level on August 5, 2022. The actual Starting Value and Threshold Valuewill be determined on the pricing date.

 

 

This historical data on the NDX is not necessarily indicativeof the future performance of the NDX or what the value of the Notes may be. Any historical upward or downward trend in the closing levelof the NDX during any period set forth above is not an indication that the closing level of the NDX is more or less likely to increaseor decrease at any time over the term of the Notes.

 

Before investing in the Notes, you should consult publiclyavailable sources for the closing levels of the NDX.

 

License Agreement

The Notes are not sponsored, endorsed, sold or promotedby Nasdaq, Inc. or its affiliates (Nasdaq, Inc., with its affiliates, are referred to as the “Corporations”). The Corporationshave not passed on the legality or suitability of, or the accuracy or adequacy of descriptions and disclosures relating to, the Notes.The Corporations make no representation or warranty, express or implied, to the owners of the Notes or any member of the public regardingthe advisability of investing in securities generally or in the Notes particularly, or the ability of the NDX to track general stock marketperformance. The Corporations’ only relationship to our affiliate, Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Licensee”)is in the licensing of the NASDAQ®, OMX®,NASDAQ OMX®, and NDX registered trademarks, and certain tradenames of the Corporations or their licensor and the use of the NDX which is determined, composed and calculated by Nasdaq, Inc. withoutregard to Licensee or the Notes. Nasdaq, Inc. has no obligation to take the needs of the Licensee or the owners of the Notes into considerationin determining, composing or calculating the NDX. The Corporations are not responsible for and have not participated in the determinationof the timing of, prices at, or quantities of the Notes to be issued or in the determination or calculation of the equation by which theNotes are to be converted into cash. The Corporations have no liability in connection with the administration, marketing or trading ofthe Notes.

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THE CORPORATIONS DO NOT GUARANTEE THE ACCURACY AND/ORUNINTERRUPTED CALCULATION OF THE NDX OR ANY DATA INCLUDED THEREIN. THE CORPORATIONS MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTSTO BE OBTAINED BY LICENSEE, OWNERS OF THE NOTES, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE NDX OR ANY DATA INCLUDED THEREIN. THECORPORATIONS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULARPURPOSE OR USE WITH RESPECT TO THE NDX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL THE CORPORATIONSHAVE ANY LIABILITY FOR ANY LOST PROFITS OR SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES, EVEN IF NOTIFIED OF THEPOSSIBILITY OF SUCH DAMAGES.

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Supplement to the Plan of Distribution; Role of BofAS and Conflictsof Interest

BofAS, a broker-dealer affiliate of ours, is a memberof the Financial Industry Regulatory Authority, Inc. (“FINRA”) and will participate as selling agent in the distribution ofthe Notes. Accordingly, the offering of the Notes will conform to the requirements of FINRA Rule 5121. BofAS may not make sales in thisoffering to any of its discretionary accounts without the prior written approval of the account holder.

 

We expect to deliver the Notes against payment thereforin New York, New York on a date that is greater than two business days following the pricing date. Under Rule 15c6-1 of the SecuritiesExchange Act of 1934, trades in the secondary market generally are required to settle in two business days, unless the parties to anysuch trade expressly agree otherwise. Accordingly, if the initial settlement of the Notes occurs more than two business days from thepricing date, purchasers who wish to trade the Notes more than two business days prior to the original issue date will be required tospecify alternative settlement arrangements to prevent a failed settlement.

 

Under our distribution agreement with BofAS, BofAS willpurchase the Notes from us as principal at the public offering price indicated on the cover of this pricing supplement, less the indicatedunderwriting discount. BofAS will sell the Notes to other broker-dealers that will participate in the offering and that are not affiliatedwith us, at an agreed discount to the principal amount. Each of those broker-dealers may sell the Notes to one or more additional broker-dealers.BofAS has informed us that these discounts may vary from dealer to dealer and that not all dealers will purchase or repurchase the Notesat the same discount. In addition to the underwriting discount, if any, an affiliate of BofA Finance will pay a referral fee of up to$4.50 per $1,000 in principal amount of the Notes in connection with the distribution of the Notes to other registered broker-dealers.

 

BofAS and any of our other broker-dealer affiliatesmay use this pricing supplement and the accompanying product supplement, prospectus supplement and prospectus for offers and sales insecondary market transactions and market-making transactions in the Notes. However, they are not obligated to engage in such secondarymarket transactions and/or market-making transactions. These broker-dealer affiliates may act as principal or agent in these transactions,and any such sales will be made at prices related to prevailing market conditions at the time of the sale.

 

At BofAS’s discretion, for a short, undeterminedinitial period after the issuance of the Notes, BofAS may offer to buy the Notes in the secondary market at a price that may exceed theinitial estimated value of the Notes. Any price offered by BofAS for the Notes will be based on then-prevailing market conditions andother considerations, including the performance of the Underlyings and the remaining term of the Notes. However, none of us, the Guarantor,BofAS or any of our other affiliates is obligated to purchase your Notes at any price or at any time, and we cannot assure you that anyparty will purchase your Notes at a price that equals or exceeds the initial estimated value of the Notes.

 

Any price that BofAS may pay to repurchase the Noteswill depend upon then prevailing market conditions, the creditworthiness of us and the Guarantor, and transaction costs. At certain times,this price may be higher than or lower than the initial estimated value of the Notes.

 

Sales Outside of the United States

 

The Notes have not been approved for public sale inany jurisdiction outside of the United States. There has been no registration or filing as to the Notes with any regulatory, securities,banking, or local authority outside of the United States and no action has been taken by BofA Finance, BAC, BofAS or any other affiliateof BAC, to offer the Notes in any jurisdiction other than the United States. As such, these Notes are made available to investors outsideof the United States only in jurisdictions where it is lawful to make such offer or sale and only under circumstances that will resultin compliance with applicable laws and regulations, including private placement requirements.

 

Further, no offer or sale of the Notes is being madeto residents of:

·Aruba
·Australia
·Bahamas
·Barbados
·Belgium
·Crimea
·Cuba
·Curacao
·Gibraltar
·Indonesia
·Italy
·Iran
·Kazakhstan
·Malaysia
·New Zealand
·North Korea
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·Norway
·Russia
·Syria
·Venezuela

 

You are urged to carefully review the selling restrictionsthat may be applicable to your jurisdiction beginning on page S-68 of the accompanying prospectus supplement.

 

European Economic Area and United Kingdom

 

None of this pricing supplement, the accompanying productsupplement, the accompanying prospectus or the accompanying prospectus supplement is a prospectus for the purposes of the Prospectus Regulation(as defined below). This pricing supplement, the accompanying product supplement, the accompanying prospectus and the accompanying prospectussupplement have been prepared on the basis that any offer of Notes in any Member State of the European Economic Area (the “EEA”)or in the United Kingdom (each, a “Relevant State”) will only be made to a legal entity which is a qualified investor underthe Prospectus Regulation (“Qualified Investors”). Accordingly any person making or intending to make an offer in that RelevantState of Notes which are the subject of the offering contemplated in this pricing supplement, the accompanying product supplement, theaccompanying prospectus and the accompanying prospectus supplement may only do so with respect to Qualified Investors. Neither BofA Financenor BAC has authorized, nor does it authorize, the making of any offer of Notes other than to Qualified Investors. The expression “ProspectusRegulation” means Regulation (EU) 2017/1129.

 

PROHIBITION OF SALESTO EEA AND UNITED KINGDOM RETAIL INVESTORS – The Notes are not intended to be offered, sold or otherwise made availableto and should not be offered, sold or otherwise made available to any retail investor in the EEA or in the United Kingdom. For these purposes:(a) a retail investor means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of Directive2014/65/EU, as amended (“MiFID II”); or (ii) a customer within the meaning of Directive (EU) 2016/97 (the Insurance DistributionDirective) where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (iii)not a qualified investor as defined in the Prospectus Regulation; and (b) the expression “offer” includes the communicationin any form and by any means of sufficient information on the terms of the offer and the Notes to be offered so as to enable an investorto decide to purchase or subscribe for the Notes. Consequently no key information document required by Regulation (EU) No 1286/2014, asamended (the “PRIIPs Regulation”) for offering or selling the Notes or otherwise making them available to retail investorsin the EEA or in the United Kingdom has been prepared and therefore offering or selling the Notes or otherwise making them available toany retail investor in the EEA or in the United Kingdom may be unlawful under the PRIIPs Regulation.

 

United Kingdom

 

The communication of this pricing supplement, the accompanyingproduct supplement, the accompanying prospectus supplement, the accompanying prospectus and any other document or materials relating tothe issue of the Notes offered hereby is not being made, and such documents and/or materials have not been approved, by an authorizedperson for the purposes of section 21 of the United Kingdom’s Financial Services and Markets Act 2000, as amended (the “FSMA”).Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the UnitedKingdom. The communication of such documents and/or materials as a financial promotion is only being made to those persons in the UnitedKingdom who have professional experience in matters relating to investments and who fall within the definition of investment professionals(as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “FinancialPromotion Order”)), or who fall within Article 49(2)(a) to (d) of the Financial Promotion Order, or who are any other persons towhom it may otherwise lawfully be made under the Financial Promotion Order (all such persons together being referred to as “relevantpersons”). In the United Kingdom, the Notes offered hereby are only available to, and any investment or investment activity to whichthis pricing supplement, the accompanying product supplement, the accompanying prospectus supplement and the accompanying prospectus relateswill be engaged in only with, relevant persons. Any person in the United Kingdom that is not a relevant person should not act or relyon this pricing supplement, the accompanying product supplement, the accompanying prospectus supplement or the accompanying prospectusor any of their contents.

 

Any invitation or inducement to engage in investmentactivity (within the meaning of Section 21 of the FSMA) in connection with the issue or sale of the Notes may only be communicated orcaused to be communicated in circumstances in which Section 21(1) of the FSMA does not apply to BofA Finance, as issuer, or BAC, as guarantor.

 

All applicable provisions of the FSMA must be compliedwith in respect to anything done by any person in relation to the Notes in, from or otherwise involving the United Kingdom.

  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-19

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

Structuring the Notes

The Notes are our debt securities, the return on whichis linked to the performance of the Underlyings. The related guarantee is BAC’s obligation. As is the case for all of our and BAC’srespective debt securities, including our market-linked notes, the economic terms of the Notes reflect our and BAC’s actual or perceivedcreditworthiness at the time of pricing. In addition, because market-linked notes result in increased operational, funding and liabilitymanagement costs to us and BAC, BAC typically borrows the funds under these types of notes at a rate, which we refer to in this pricingsupplement as BAC’s internal funding rate, that is more favorable to BAC than the rate that it might pay for a conventional fixedor floating rate debt security. This generally relatively lower internal funding rate, which is reflected in the economic terms of theNotes, along with the fees and charges associated with market-linked notes, typically results in the initial estimated value of the Noteson the pricing date being less than their public offering price.

 

In order to meet our payment obligations on the Notes,at the time we issue the Notes, we may choose to enter into certain hedging arrangements (which may include call options, put optionsor other derivatives) with BofAS or one of our other affiliates. The terms of these hedging arrangements are determined based upon termsprovided by BofAS and its affiliates, and take into account a number of factors, including our and BAC’s creditworthiness, interestrate movements, the volatility of the Underlyings, the tenor of the Notes and the hedging arrangements. The economic terms of the Notesand their initial estimated value depend in part on the terms of these hedging arrangements.

 

BofAS has advised us that the hedging arrangements willinclude hedging related charges, reflecting the costs associated with, and our affiliates’ profit earned from, these hedging arrangements.Since hedging entails risk and may be influenced by unpredictable market forces, actual profits or losses from these hedging transactionsmay be more or less than any expected amounts.

 

For further information, see “Risk Factors”beginning on page PS-8 above and “Supplemental Use of Proceeds” on page PS-19 of the accompanying product supplement.

  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-20

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

U.S. Federal Income Tax Summary

The following summary of the material U.S. federal incomeand estate tax considerations of the acquisition, ownership, and disposition of the Notes supplements, and to the extent inconsistentsupersedes, the discussions under “U.S. Federal Income Tax Considerations” in the accompanying prospectus and under “U.S.Federal Income Tax Considerations” in the accompanying prospectus supplement and is not exhaustive of all possible tax considerations.This summary is based upon the Internal Revenue Code of 1986, as amended (the “Code”), regulations promulgated under the Codeby the U.S. Treasury Department (“Treasury”) (including proposed and temporary regulations), rulings, current administrativeinterpretations and official pronouncements of the IRS, and judicial decisions, all as currently in effect and all of which are subjectto differing interpretations or to change, possibly with retroactive effect. No assurance can be given that the IRS would not assert,or that a court would not sustain, a position contrary to any of the tax consequences described below. This summary does not include anydescription of the tax laws of any state or local governments, or of any foreign government, that may be applicable to a particular holder.

 

Although the Notes are issued by us, they will be treatedas if they were issued by BAC for U.S. federal income tax purposes. Accordingly throughout this tax discussion, references to “we,”“our” or “us” are generally to BAC unless the context requires otherwise.

 

This summary is directed solely to U.S. Holders andNon-U.S. Holders that, except as otherwise specifically noted, will purchase the Notes upon original issuance and will hold the Notesas capital assets within the meaning of Section 1221 of the Code, which generally means property held for investment, and that are notexcluded from the discussion under “U.S. Federal Income Tax Considerations” in the accompanying prospectus.

 

You should consult your own tax advisor concerning theU.S. federal income tax consequences to you of acquiring, owning, and disposing of the Notes, as well as any tax consequences arisingunder the laws of any state, local, foreign, or other tax jurisdiction and the possible effects of changes in U.S. federal or other taxlaws.

 

General

 

Although there is no statutory, judicial, or administrativeauthority directly addressing the characterization of the Notes, in the opinion of our counsel, Sidley Austin LLP, and based on certainfactual representations received from us, the Notes should be treated as single financial contracts with respect to the Underlyings andunder the terms of the Notes, we and every investor in the Notes agree, in the absence of an administrative determination or judicialruling to the contrary, to treat the Notes in accordance with such characterization. This discussion assumes that the Notes constitutesingle financial contracts with respect to the Underlyings for U.S. federal income tax purposes. If the Notes did not constitute singlefinancial contracts, the tax consequences described below would be materially different.

 

This characterization of the Notes is not bindingon the IRS or the courts. No statutory, judicial, or administrative authority directly addresses the characterization of the Notes orany similar instruments for U.S. federal income tax purposes, and no ruling is being requested from the IRS with respect to their propercharacterization and treatment. Due to the absence of authorities on point, significant aspects of the U.S. federal income tax consequencesof an investment in the Notes are not certain, and no assurance can be given that the IRS or any court will agree with the characterizationand tax treatment described in this pricing supplement. Accordingly, you are urged to consult your tax advisor regarding all aspects ofthe U.S. federal income tax consequences of an investment in the Notes, including possible alternative characterizations.

 

Unless otherwise stated, the following discussion isbased on the characterization described above. The discussion in this section assumes that there is a significant possibility of a significantloss of principal on an investment in the Notes.

 

We will not attempt to ascertain whether the issuerof an Underlying or the issuer of any component stock included in the Underlying would be treated as a “passive foreign investmentcompany” (“PFIC”), within the meaning of Section 1297 of the Code, or a United States real property holding corporation,within the meaning of Section 897(c) of the Code. If the issuer of one or more stocks included in an Underlying were so treated, certainadverse U.S. federal income tax consequences could possibly apply to a holder of the Notes. You should refer to information filed withthe SEC by the issuers of the component stocks included in each Underlying and consult your tax advisor regarding the possible consequencesto you, if any, if the issuer of an Underlying or the issuer of any component stock included in the Underlying is or becomes a PFIC oris or becomes a United States real property holding corporation.

 

U.S. Holders

 

Upon receipt of a cash payment at maturity or upon asale or exchange of the Notes prior to maturity, a U.S. Holder generally will recognize capital gain or loss equal to the difference betweenthe amount realized and the U.S. Holder’s tax basis in the Notes. A U.S. Holder’s tax basis in the Notes will equal the amountpaid by that holder to acquire them. Subject to the discussion below concerning the possible application of the “constructive ownership”rules of Section 1260 of the Code, this capital gain or loss generally will be long-term capital gain or loss if the U.S. Holder heldthe Notes for more than one year. The deductibility of capital losses is subject to limitations.

 

Possible Application of Section 1260 of the Code. Sinceone Underlying is the type of financial asset described under Section 1260 of the Code (including, among others, any equity interest inpass-through entities such as exchange traded funds, regulated investment companies, real estate

  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-21

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

investment trusts, partnerships, and passive foreigninvestment companies, each a “Section 1260 Financial Asset”), while the matter is not entirely clear, there may exist a riskthat an investment in the Notes will be treated, in whole or in part, as a “constructive ownership transaction” to which Section1260 of the Code applies. If Section 1260 of the Code applies, all or a portion of any long-term capital gain recognized by a U.S. Holderin respect of the Notes will be recharacterized as ordinary income (the “Excess Gain”). In addition, an interest charge willalso apply to any deemed underpayment of tax in respect of any Excess Gain to the extent such gain would have resulted in gross incomeinclusion for the U.S. Holder in taxable years prior to the taxable year of the sale, exchange, or settlement (assuming suchincome accrued at a constant rate equal to the applicable federal rate as of the date of sale, exchange, or settlement).

 

If an investment in the Notes is treated as a constructiveownership transaction, it is not clear to what extent any long-term capital gain of a U.S. Holder in respect of the Notes will be recharacterizedas ordinary income. It is possible, for example, that the amount of the Excess Gain (if any) that would be recharacterized as ordinaryincome in respect of the Notes will equal the excess of (i) any long-term capital gain recognized by the U.S. Holder in respect of theNotes and attributable to Section 1260 Financial Assets, over (ii) the “net underlying long-term capital gain” (as definedin Section 1260 of the Code) such U.S. Holder would have had if such U.S. Holder had acquired an amount of the corresponding Section 1260Financial Assets at fair market value on the original issue date for an amount equal to the portion of the issue price of the Notes attributableto the corresponding Section 1260 Financial Assets and sold such amount of Section 1260 Financial Assets at maturity or upon sale or exchange of the Notes at fair market value. Unless otherwise established by clear and convincing evidence, the net underlying long-termcapital gain is treated as zero and therefore it is possible that all long-term capital gain recognized by a U.S. Holder in respect ofthe Notes will be recharacterized as ordinary income if Section 1260 of the Code applies to an investment in the Notes. U.S. Holders shouldconsult their tax advisors regarding the potential application of Section 1260 of the Code to an investment in the Notes.

 

As described below, the IRS, as indicated in Notice2008-2 (the “Notice”), is considering whether Section 1260 of the Code generally applies or should apply to the Notes, includingin situations where the Underlyings are not the type of financial asset described under Section 1260 of the Code.

 

Alternative Tax Treatments. Due to the absenceof authorities that directly address the proper tax treatment of the Notes, prospective investors are urged to consult their tax advisorsregarding all possible alternative tax treatments of an investment in the Notes. In particular, the IRS could seek to subject the Notesto the Treasury regulations governing contingent payment debt instruments. If the IRS were successful in that regard, the timing and characterof income on the Notes would be affected significantly. Among other things, a U.S. Holder would be required to accrue original issue discountevery year at a “comparable yield” determined at the time of issuance. In addition, any gain realized by a U.S. Holder atmaturity or upon a sale or exchange of the Notes generally would be treated as ordinary income, and any loss realized at maturity or upona sale or exchange of the Notes generally would be treated as ordinary loss to the extent of the U.S. Holder’s prior accruals oforiginal issue discount, and as capital loss thereafter.

 

The Notice sought comments from the public on the taxationof financial instruments currently taxed as “prepaid forward contracts.” This Notice addresses instruments such as the Notes.According to the Notice, the IRS and Treasury are considering whether a holder of an instrument such as the Notes should be required toaccrue ordinary income on a current basis, regardless of whether any payments are made prior to maturity. It is not possible to determinewhat guidance the IRS and Treasury will ultimately issue, if any. Any such future guidance may affect the amount, timing and characterof income, gain, or loss in respect of the Notes, possibly with retroactive effect.

 

The IRS and Treasury are also considering additionalissues, including whether additional gain or loss from such instruments should be treated as ordinary or capital, whether foreign holdersof such instruments should be subject to withholding tax on any deemed income accruals, whether Section 1260 of the Code, concerning certain“constructive ownership transactions,” generally applies or should generally apply to such instruments, and whether any ofthese determinations depend on the nature of the underlying asset.

 

In addition, proposed Treasury regulations require theaccrual of income on a current basis for contingent payments made under certain notional principal contracts. The preamble to the regulationsstates that the “wait and see” method of accounting does not properly reflect the economic accrual of income on those contracts,and requires current accrual of income for some contracts already in existence. While the proposed regulations do not apply to prepaidforward contracts, the preamble to the proposed regulations expresses the view that similar timing issues exist in the case of prepaidforward contracts. If the IRS or Treasury publishes future guidance requiring current economic accrual for contingent payments on prepaidforward contracts, it is possible that you could be required to accrue income over the term of the Notes.

 

Because of the absence of authority regarding the appropriatetax characterization of the Notes, it is also possible that the IRS could seek to characterize the Notes in a manner that results in taxconsequences that are different from those described above. For example, the IRS could possibly assert that any gain or loss that a holdermay recognize at maturity or upon the sale or exchange of the Notes should be treated as ordinary gain or loss.

 

Because the NDX is an index that periodically rebalances,it is possible that the Notes could be treated as a series of single financial contracts, each of which matures on the next rebalancingdate. If the Notes were properly characterized in such a manner, a U.S. Holder would be treated as disposing of the Notes on each rebalancingdate in return for new Notes that mature on the next rebalancing date, and a U.S. Holder would accordingly likely recognize capital gainor loss on each rebalancing date equal to the difference between the holder’s tax basis in the Notes (which would be adjusted totake into account any prior recognition of gain or loss) and the fair market value of the Notes on such date.

  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-22

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

Non-U.S. Holders

 

Except as discussed below, a Non-U.S. Holder generallywill not be subject to U.S. federal income or withholding tax for amounts paid in respect of the Notes provided that the Non-U.S. Holdercomplies with applicable certification requirements and that the payment is not effectively connected with the conduct by the Non-U.S.Holder of a U.S. trade or business. Notwithstanding the foregoing, gain from the sale or exchange of the Notes or their settlement atmaturity may be subject to U.S. federal income tax if that Non-U.S. Holder is a non-resident alien individual and is present in the U.S.for 183 days or more during the taxable year of the sale, exchange, or settlement and certain other conditions are satisfied.

 

If a Non-U.S. Holder of the Notes is engaged in theconduct of a trade or business within the U.S. and if any gain realized on the settlement at maturity, or upon sale or exchange of theNotes, is effectively connected with the conduct of such trade or business (and, if certain tax treaties apply, is attributable to a permanentestablishment maintained by the Non-U.S. Holder in the U.S.), the Non-U.S. Holder, although exempt from U.S. federal withholding tax,generally will be subject to U.S. federal income tax on such gain on a net income basis in the same manner as if it were a U.S. Holder.Such Non-U.S. Holders should read the material under the heading “—U.S. Holders,” for a description of the U.S. federalincome tax consequences of acquiring, owning, and disposing of the Notes. In addition, if such Non-U.S. Holder is a foreign corporation,it may also be subject to a branch profits tax equal to 30% (or such lower rate provided by any applicable tax treaty) of a portion ofits earnings and profits for the taxable year that are effectively connected with its conduct of a trade or business in the U.S., subjectto certain adjustments.

 

A “dividend equivalent” payment is treatedas a dividend from sources within the United States and such payments generally would be subject to a 30% U.S. withholding tax if paidto a Non-U.S. Holder. Under Treasury regulations, payments (including deemed payments) with respect to equity-linked instruments (“ELIs”)that are “specified ELIs” may be treated as dividend equivalents if such specified ELIs reference an interest in an “underlyingsecurity,” which is generally any interest in an entity taxable as a corporation for U.S. federal income tax purposes if a paymentwith respect to such interest could give rise to a U.S. source dividend. However, IRS guidance provides that withholding on dividend equivalentpayments will not apply to specified ELIs that are not delta-one instruments and that are issued before January 1, 2023. Based on ourdetermination that the Notes are not delta-one instruments, Non-U.S. Holders should not be subject to withholding on dividend equivalentpayments, if any, under the Notes. However, it is possible that the Notes could be treated as deemed reissued for U.S. federal incometax purposes upon the occurrence of certain events affecting the Underlyings or the Notes, and following such occurrence the Notes couldbe treated as subject to withholding on dividend equivalent payments. Non-U.S. Holders that enter, or have entered, into other transactionsin respect of the Underlyings or the Notes should consult their tax advisors as to the application of the dividend equivalent withholdingtax in the context of the Notes and their other transactions. If any payments are treated as dividend equivalents subject to withholding,we (or the applicable paying agent) would be entitled to withhold taxes without being required to pay any additional amounts with respectto amounts so withheld.

 

As discussed above, alternative characterizations ofthe Notes for U.S. federal income tax purposes are possible. Should an alternative characterization, by reason of change or clarificationof the law, by regulation or otherwise, cause payments as to the Notes to become subject to withholding tax, tax will be withheld at theapplicable statutory rate. As discussed above, the IRS has indicated in the Notice that it is considering whether income in respect ofinstruments such as the Notes should be subject to withholding tax.Prospective Non-U.S. Holders should consult their own tax advisorsregarding the tax consequences of such alternative characterizations.

 

U.S. Federal Estate Tax. Under current law, whilethe matter is not entirely clear, individual Non-U.S. Holders, and entities whose property is potentially includible in those individuals’gross estates for U.S. federal estate tax purposes (for example, a trust funded by such an individual and with respect to which the individualhas retained certain interests or powers), should note that, absent an applicable treaty benefit, a Note is likely to be treated as U.S.situs property, subject to U.S. federal estate tax. These individuals and entities should consult their own tax advisors regarding theU.S. federal estate tax consequences of investing in a Note.

 

Backup Withholding and Information Reporting

 

Please see the discussion under “U.S. FederalIncome Tax Considerations — General — Backup Withholding and Information Reporting” in the accompanying prospectus fora description of the applicability of the backup withholding and information reporting rules to payments made on the Notes.

  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-23

Capped Buffered Enhanced Return Notes Linked to the Least Performing of the iShares® Russell 1000 Growth ETF and the Nasdaq-100® Index

Where You Can Find More Information

The terms and risks of the Notes are contained in thispricing supplement and in the following related product supplement, prospectus supplement and prospectus, which can be accessed at thefollowing links:

 

Product Supplement EQUITY-1 dated January 3, 2020:

https://www.sec.gov/Archives/edgar/data/70858/000119312520001483/d836196d424b5.htm

 

Series A MTN prospectus supplement dated December 31, 2019 and prospectus datedDecember 31, 2019:

https://www.sec.gov/Archives/edgar/data/70858/000119312519326462/d859470d424b3.htm

 

This pricing supplement and the accompanying productsupplement, prospectus supplement and prospectus have been filed as part of a registration statement with the SEC, which may, withoutcost, be accessed on the SEC website at www.sec.gov or obtained from BofAS by calling 1-800-294-1322. Before you invest, you should readthis pricing supplement and the accompanying product supplement, prospectus supplement and prospectus for information about us, BAC andthis offering. Any prior or contemporaneous oral statements and any other written materials you may have received are superseded by thispricing supplement and the accompanying product supplement, prospectus supplement and prospectus. Certain terms used but not defined inthis pricing supplement have the meanings set forth in the accompanying product supplement or prospectus supplement. Unless otherwiseindicated or unless the context requires otherwise, all references in this document to “we,” “us,” “our,”or similar references are to BofA Finance, and not to BAC.

 

The Notes are our senior debt securities. Any paymentson the Notes are fully and unconditionally guaranteed by BAC. The Notes and the related guarantee are not insured by the Federal DepositInsurance Corporation or secured by collateral. The Notes will rank equally in right of payment with all of our other unsecured and unsubordinatedobligations, and the related guarantee will rank equally in right of payment with all of BAC’s other unsecured and unsubordinatedobligations, in each case except obligations that are subject to any priorities or preferences by law. Any payments due on the Notes,including any repayment of the principal amount, will be subject to the credit risk of BofA Finance, as issuer, and BAC, as guarantor.

  CAPPED BUFFERED ENHANCED RETURN NOTES | PS-24

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