Merrill Lynch plans to price Stars linked to S&P 500 for Eksportfinans

By Angela McDaniels

Tacoma, Wash., Sept. 23 - Eksportfinans ASA plans to price one-year 0% Strategic Accelerated Redemption Securities linked to the S&P 500 index via Merrill Lynch, Pierce, Fenner & Smith Inc., according to an FWP filing 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 automatically called at par of $10 plus an annualized call premium of 7% to 11% that will be set at pricing. The observation dates are expected to fall in April 2011, July 2011 and October 2011.

If the notes are not called, the payout at maturity will be par if the final index level is greater than or equal to the threshold level, 90% of the initial level. Investors will lose 1% for every 1% that the index declines below the threshold level.

The notes will price in October or November.

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