Custodial Trust ups minimum payout for basket gains on planned metal-linked CDs

By Laura Lutz

Washington, Feb. 15 - LaSalle Financial Services Inc. announced changes to the terms of the offering of zero-coupon principal protected metal-linked certificates of deposit due Aug. 24, 2011 that LaSalle and Bear, Stearns & Co. Inc. plan to price for issuer Custodial Trust Co.

The CDs will be linked to a basket containing equal weights of aluminum, copper, nickel and zinc.

According to a LaSalle term sheet, if the final basket level shows a positive return of 65% or less, the payout at maturity will be par plus the basket return multiplied by a percentage that is expected to be 165% and will be determined at pricing.

If the final basket level shows a positive return of more than 65%, the payout will be par plus the basket return. Investors will receive at least par.

When the deal was announced on Feb. 6, the CDs were expected to have a minimum return of 50% if the basket return was positive.

The CDs are expected to price on Feb. 16 and settle on Feb. 21.

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