Bank of America plans one-year Stars linked to Ford Motor stock

By Marisa Wong

Madison, Wis., June 16 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due July 2012 linked to the common stock of Ford Motor Co., according to an FWP filing with the Securities and Exchange Commission.

If the price of Ford shares closes at or above the initial price on any of the observation dates in December 2011, March 2012 or June 2012, the notes will be called at par of $10 plus a premium of 14% to 18% per year. The exact call premium will be determined at pricing.

If the notes are not called, the payout at maturity will be par plus the share price return. Investors will be fully exposed to losses.

The notes will price in June and settle in July.

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

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