Bank of America to price Stars linked to SPDR Gold Trust

By Angela McDaniels

Tacoma, Wash., April 1 - Bank of America Corp. plans to price two-year 0% Strategic Accelerated Redemption Securities linked to shares of the SPDR Gold Trust, according to an FWP filing with the Securities and Exchange Commission.

If the trust's shares close at or above the initial share price on any of three semiannual observation dates, the notes will be automatically called and investors will receive par of $10 plus an annualized call premium of 14% to 18%. The exact premium will be set at pricing.

If the notes are not called, the payout at maturity will be par if the final share price of the trust is greater than or equal to the threshold level - 90% of the initial price. Otherwise, investors will lose 1% for every 1% that the share price declines beyond the threshold level.

The notes will price in April or May.

The issuer said it may apply to list the notes on the NYSE Arca under the symbol "GBN."

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

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