Bank of America to price Stars linked to S&P 500 index via Merrill

By Jennifer Chiou

New York, Nov. 2 - Bank of America plans to price 0% Strategic Accelerated Redemption Securities due December 2012 linked to the S&P 500 index, according to an FWP with the Securities and Exchange Commission.

The notes will be called at par of $10 plus a call premium of 10% to 14% per year if the index closes at or above its initial level on any of the quarterly observation dates.

If the notes are not called and the final index level is at least 95% of the initial index level, the payout at maturity will be par. Investors will lose 1% for every 1% that the index declines beyond 5%.

The notes will price and settle in November.

Bank of America Merrill Lynch is the agent.

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