Bank of America plans to price one-year Stars linked to JPMorgan stock

By Marisa Wong

Madison, Wis., April 15 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due May 2012 linked to the common stock of JPMorgan Chase & Co., according to an FWP filing with the Securities and Exchange Commission.

If JPMorgan shares close at or above the initial share price on any of three observation dates, the notes will be called at par of $10 plus a premium of 11% to 15% per year. The observation dates are expected to fall in October 2011, January 2012 and April 2012. The exact premium and dates will be set at pricing.

The payout at maturity will be par if the final share price is at least 95% of the initial share price. Investors will be exposed to any decline below the threshold level.

The notes will price in April and settle in May.

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

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