Bank of America to price seven-month Stars tied to RBOB gasoline

By Marisa Wong

Milwaukee, April 30 - Bank of America Corp. plans to price seven-month 0% Strategic Accelerated Redemption Securities linked to the price of the front-month futures contract for RBOB gasoline, according to an FWP filing with the Securities and Exchange Commission.

If the final price of RBOB gasoline is greater than or equal to its initial price, the notes will be called at par of $10 plus a fixed call premium of 8% to 11% that will be set at pricing.

If the notes are not called, the payout at maturity will be par unless the final price falls below 95% of the initial price, in which case investors will be exposed to the decline beyond the threshold level.

The notes are expected to price and settle in May.

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

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