Bank of America to price one-year Stars linked to S&P 500 index

By Jennifer Chiou

New York, Feb. 10 - Bank of America Corp. plans to price one-year 0% Strategic Accelerated Redemption Securities linked to the S&P 500 index, according to an FWP with the Securities and Exchange Commission.

If the final index level is greater than or equal to the initial level on any observation date, the notes will be automatically called at par of $10 plus a premium of 6% to 10% per year that will be set at pricing.

If the notes are not called, the payout at maturity will be par if the final index level is at least 95% of the initial level. Investors will share in losses beyond the threshold level.

The notes are expected to price in February and settle in March.

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

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