Bank of America plans one-year Stars linked to Cisco Systems stock

By Toni Weeks

San Diego, May 12 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due June 2012 linked to the common stock of Cisco Systems, Inc., according to an FWP filing with the Securities and Exchange Commission.

If the price of Cisco shares closes at or above its initial price on the observation dates in November 2011, February 2012 or May 2012, the notes will be called at par of $10 plus a call premium of 10% to 14% per year. The exact call premium will be determined at pricing.

Investors will receive par at maturity if the index falls by up to 5% and will be exposed to losses beyond 5%.

The notes will price in May and settle in June.

Bank of America Merrill Lynch is the agent.

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