Merrill plans five-month Stars on palladium for Eksportfinans

By Jennifer Chiou

New York, June 14 - Eksportfinans ASA plans to price 0% Strategic Accelerated Redemption Securities due November 2011 linked to the front month palladium futures contract via Bank of America Merrill Lynch, according to an FWP with the Securities and Exchange Commission.

If the price of palladium futures finishes at or above its initial level on the observation date in November, the securities will be called at par of $10 plus an annualized premium of 19.2% to 28.8% per year. The exact call premium will be determined at pricing.

Investors will be exposed to any losses at maturity if the securities are not called.

The securities will price and settle in June.

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