Bank of America plans to price Stars linked to S&P 500 index

By Toni Weeks

San Luis Obispo, Calif., Feb. 5 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due March 2014 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the index closes at or above its initial level on any quarterly observation date, the notes will be called at par of $10 plus an annualized call premium of 4% to 7%. The exact call premium will be determined at pricing.

If the final index level is at least 95% of the initial level, the payout at maturity will be par. Investors will be exposed to any losses beyond the 5% buffer.

The notes will price and settle in February.

Bank of America Merrill Lynch is the agent.

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