Bank of America plans one-year Stars linked to iShares MSCI EAFE, EM

By Susanna Moon

Chicago, Oct. 29 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due December 2011 based on the performance of the iShares MSCI EAFE index fund and the iShares MSCI Emerging Markets index fund, according to an FWP filing with the Securities and Exchange Commission.

If the fund basket closes at or above its initial level on any of three observation dates, the notes will be called at par of $10 plus a premium of 7% to 11% per year. The observation dates will be in May 2011, August 2011 and November 2011.

The payout at maturity will be par if the basket finishes at or above the threshold level - 90% of the initial level - and investors will be exposed to any decline below the threshold level.

The notes will price in November and settle in December.

The exact deal terms will be set at pricing.

Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.

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