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

By Marisa Wong

Morgantown, W.Va., July 14 – Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due August 2017 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 6% to 10% if the index closes at or above its initial level on any of three review dates. The review dates will be six, nine and 12 months after the pricing date. The exact call premium will be set at pricing.

If the notes are not called and the index finishes at or above the 95% threshold level, the payout at maturity will be par. Otherwise, investors will be exposed to any index decline beyond 5%.

BofA Merrill Lynch is the underwriter.

The notes will price in July and settle in August.

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