Bank of America plans relative Stars on three stocks vs. T-bond fund

By Susanna Moon

Chicago, Aug. 28 – Bank of America Corp. plans to price 0% relative value Strategic Accelerated Redemption Securities due September 2015 linked to the performance of a basket of three equally weighted financial stocks versus the iShares Barclays 20+ Year Treasury Bond fund, according to an FWP filing with the Securities and Exchange Commission.

The underlying companies are Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co.

The notes will be called at par of $10 plus a premium of 9% to 13% per year if the stock basket performs at or above the level of the T-bond fund on any of the three observation dates.

If the notes are not called, the payout at maturity will be par unless the basket finishes below the T-bond fund, in which case investors will be exposed to any losses.

BofA Merrill Lynch is the agent.

The notes will price and settle in September.

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