Bank of America plans to sell 0% Stars linked to iShares MSCI ETFs

By Marisa Wong

Madison, Wis., June 24 - Bank of America Corp. plans to price 0% Strategic Accelerated Redemption Securities due August 2012 linked to an equally weighted basket that includes the iShares MSCI EAFE index fund and the iShares MSCI Emerging Markets index fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus a premium of 9% to 13% per year if the basket closes at or above the initial basket level on any of three observation dates in January 2012, April 2012 and July 2012.

If the notes are not called and the final basket level is at least 95% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the basket level declines beyond 5%.

The notes will price in July and settle in August.

Bank of America Merrill Lynch is the agent.

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