Barclays plans Stars linked to Russell 2000 index via Merrill Lynch

By Jennifer Chiou

New York, Jan. 26 - Barclays Bank plc plans to price 0% Strategic Accelerated Redemption Securities due March 2013 linked to the Russell 2000 index, according to an FWP with the Securities and Exchange Commission.

The notes will be called at par of $10 plus a call premium of 10% to 14% per year if the index closes at or above its initial level on any of the quarterly call dates beginning in August 2012. The exact call premium will be set at pricing.

If the notes are not called, the payout at maturity will be par plus the index return. Because the final call date is also the final observation date, if the notes are not called, the index return will be negative and the payout at maturity will result in a loss of principal.

The notes will price in February and settle in March.

Bank of America Merrill Lynch is the agent.

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