BofA Finance LLC has recently filed a pricing supplement for $1,263,000 in contingent income auto-callable yield notes linked to the common stock of Tesla, Inc. This development is significant as it highlights BofA's strategy to diversify its financial products, catering to investors seeking potentially high returns.

The notes are set to issue on November 3, 2026, and are designed to appeal to investors looking for income linked to the performance of Tesla's stock. The filing indicates that the notes will have a contingent coupon rate of 11.70% per annum, payable monthly if certain conditions are met regarding Tesla's stock price.

Background

BofA Finance LLC, classified under the SIC code 6021, operates in the national commercial banks sector. This entity is a part of Bank of America Corporation, which is also noted in the filing as the guarantor of the yield notes. The company is incorporated in Delaware and has its business address in Charlotte, North Carolina.

What the Filing Says

The filing states that the notes are linked to Tesla's stock and will have an approximate three-year term, unless called prior to maturity. It also mentions, "Payments on the Notes will depend on the performance of the common stock of Tesla, Inc. (the 'Underlying Stock')." This structure indicates a potential for high returns but also carries significant risks, as the principal amount is at risk if Tesla's stock declines significantly.

Impact

This offering may attract a range of investors, particularly those interested in high-yield products linked to the performance of well-known companies like Tesla. The contingent nature of the payments may appeal to risk-tolerant investors, while also presenting a risk profile that could deter more conservative investors.

What's Next

The filing does not specify what happens next, but the notes are scheduled to issue on November 3, 2026, following the pricing date of October 29, 2026. Investors will need to monitor Tesla's stock performance closely to assess the potential returns from these notes.