Merrill Lynch to price 0% Stars linked to Russell Midcap index for Bank of America

By E. Janene Geiss

Philadelphia, Jan. 5 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due February 2011 linked to the Russell Midcap Growth index, according to an FWP filing with the Securities and Exchange Commission.

Merrill Lynch & Co. and affiliate First Republic Securities Co., LLC are the underwriters.

If the closing level of the index on any observation date is at least the initial level, the notes will be called and investors will receive par of $10 plus 14% to 18%. The exact call premium will be set at pricing. The observation dates will fall in February 2010, July 2010 and January 2011.

If the notes are not called early, the payout at maturity will be par minus 1% for each 1% that the index declines beyond 10%. The payout at maturity will not be more than par.

The issuer has applied to list the securities on the NYSE Arca under the symbol "RIH."

The notes are expected to price and settle in January or February.

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