Bank of America plans to price six-month Stars linked to S&P 500

By Marisa Wong

Milwaukee, April 29 - Bank of America plans to price 0% Strategic Accelerated Redemption Securities due November 2010 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the closing level of the index is greater than or equal to the initial level, the notes will be called at par plus a fixed call premium of 6% to 10% that will be set at pricing.

If the notes are not called, the payout at maturity will be par plus the index return. Investors will be fully exposed to any index decline.

The notes are expected to price in May and settle in June.

Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the agents.

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