Bank of America plans to sell two-year Stars linked to S&P 500 index

By Jennifer Chiou

New York, Feb. 26 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due March 2012 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at a premium of 7% to 9% per year if the index closes at or above its initial level on any of three semiannual observation dates.

If the notes are not called, investors will be exposed to any losses, with up to 90% of the investment at risk. The exact deal terms will be set at pricing.

The notes will price in March and settle in April.

The issuer may apply to list the notes on NYSE Arca under the symbol "ADF."

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

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