UPDATE 1-Terra Firma mulls 1 bln stg Odeon sale-sources

* Terra Firma weighs Odeon sale, refinancing-sources

* BoA Merrill Lynch seen as logical adviser

* No decision to sell taken, no mandate awarded yet

(Recasts with source comments, adds detail and background)

LONDON, April 1 (Reuters) - Guy Hands' private equity firm Terra Firma [TERA.UL] is weighing the sale of the Odeon & UCI [ODCNM.UL] cinema chain, people familiar with the situation said on Friday.

The buyout house has been talking to Bank of America Merrill Lynch (BAC.N), seen as a logical choice of adviser given its close links to the firm, about options for the business, though no formal mandate has been awarded, two people said.

A sale of the business could fetch between 700 million pounds ($1.1 billion) and 1 billion, the Financial Times said.

A refinancing of the business is also an option and no firm decision has been taken to sell, one of the people said.

Terra Firma received approaches for the business last year after the sale of rival chain Vue Entertainment [VUENT.UL] to Doughty Hanson [DOUHA.UL], including one from BC Partners [BCPRT.UL], which had been narrowly pipped in that auction, people said at the time.

Vue was also cited as a potential acquirer of Odeon by the FT.

Terra Firma and Bank of America declined comment. (Reporting by Simon Meads, Victoria Howley and Karolina Tagaris; Editing by David Holmes) ($1=.6212 Pound)