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

By Angela McDaniels

Tacoma, Wash., March 25 - Bank of America Corp. plans to price two-year 0% Strategic Accelerated Redemption Securities linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the index closes at or above its initial level on any of three semiannual observation dates, the notes will be called at par of $10 plus a premium of 7% to 11% per year. The exact premium will be set at pricing.

If the notes are not called, the payout at maturity will be par if the final index level is greater than or equal to the threshold level, 95% of the initial level. Investors will be exposed to any decline below the threshold level.

The notes will price in April or May.

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

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

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