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

By Jennifer Chiou

New York, May 27 - Eksportfinans ASA plans to price 18-month 0% Bear Market Strategic Accelerated Redemption Securities linked to the S&P 500 index via Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC and Banc of America Investment Services, Inc., according to an FWP filing with the Securities and Exchange Commission.

If the index closes at or below the initial index level on any of three semiannual observation dates, the notes will be called and investors will receive par of $10 plus an annualized call premium of 7% to 11%. The exact call premium will be set at pricing.

If the notes are not called, investors will receive par if the final index level is 110% of the initial level or less. Investors will lose 1% for every 1% that the index advances beyond 10%.

The notes are expected to price in June and settle in July, and the maturity date will fall in January 2011.

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