Bank of America plans Stars linked to Financial Select Sector index

By Jennifer Chiou

New York, Nov. 19 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due December 2011 linked to the Financial Select Sector index, according to an FWP with the Securities and Exchange Commission.

If the index closes at or above its initial level on any of three observation dates, the notes will be called at par of $10 plus a premium of 11% to 14% per year. The observation dates will occur in June 2011, September 2011 and December 2011.

The payout at maturity will be par if the index finishes at or above the threshold level - 95% of the initial level - and investors will be exposed to any decline below the threshold level.

The notes will price in November and settle in December.

The exact deal terms will be set at pricing.

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

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