Bank of America plans one-year Stars linked to iShares MSCI EAFE, EM

By Susanna Moon

Chicago, April 4 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due May 2013 linked to a basket of two equally weighted funds, according to an FWP filing with the Securities and Exchange Commission.

The underlying components are the iShares MSCI EAFE index fund and the iShares MSCI Emerging Markets index fund.

The notes will be called at a premium if the basket level closes at or above the initial level on any of three call dates. The call premium will be 5% to 7% if the notes are called in October 2012, 7.5% to 10.5% if called in January 2013 and 10% to 14% if called in May 2013.

If the notes are not called, the payout at maturity will be par if the basket falls by up to 5%.

Investors will be exposed to any losses beyond 5%.

Bank of America Merrill Lynch is the underwriter.

The notes will price in April and settle in May.

The exact deal terms will be set at pricing.

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