Bank of America plans Stars linked to Freeport-McMoRan Copper & Gold

By Marisa Wong

Madison, Wis., Nov. 14 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due December 2014 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to an FWP filing with the Securities and Exchange Commission.

If Freeport-McMoRan 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 an annualized call premium of 17% to 21%. The exact call premium will be set at pricing. The observation dates will be about six, nine and 12 months after the pricing date.

If the notes are not called, investors will be fully exposed to the share price decline.

BofA Merrill Lynch is the underwriter.

The notes are expected to price in November and settle in December.

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