Bank of America plans Stars linked to iShares MSCI Brazil index fund

By Angela McDaniels

Tacoma, Wash., June 24 - Bank of America Corp. plans to price two-year 0% Strategic Accelerated Redemption Securities linked to the iShares MSCI Brazil index fund, according to an FWP filing with the Securities and Exchange Commission.

If shares of the exchange-traded fund 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 15% to 19%. The exact call premium will be set at pricing.

If the notes are not called, the payout at maturity will be par if the final share price is at least 90% of the initial price. Otherwise, investors will lose 1% for every 1% that the share price declines beyond 10%.

The notes are expected to price in July or August.

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

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