Merrill Lynch to price Bear Market Stars linked to S&P 500 for Eksportfinans

By Angela McDaniels

Tacoma, Wash., April 22 - Eksportfinans ASA plans to price 18-month 0% Bear Market Strategic Accelerated Redemption Securities linked to the S&P 500 index via Merrill Lynch & Co. and First Republic Securities Co., LLC, according to an FWP filing with the Securities and Exchange Commission.

If the index closes at or below the initial index level on an observation date, the notes will be called and investors will receive par of $10 plus an annualized call premium of 9% to 13%. The exact call premium will be set at pricing, and the observation dates are expected to fall in November 2009, May 2010 and November 2010.

If the notes are not called, the payout at maturity will be par if the final index level is 110% of the initial level or below. Otherwise, investors will lose 1% for every 1% that the index advances beyond 110% of the initial level.

The notes are expected to price in May or June, and the maturity date will fall in November or December of 2010.

The issuer may apply to list the notes on the NYSE Arca under the symbol "BAQ."

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