Union Bank to price quarterly capped return CDs linked to Dow Jones - UBS Commodity index

By Angela McDaniels

Tacoma, Wash., Oct. 27 - Union Bank, NA plans to price zero-coupon principal-protected quarterly capped return market-linked certificates of deposit due May 27, 2014 linked to the Dow Jones - UBS Commodity index, according to a term sheet.

The payout at maturity will be par plus the sum of the index's returns in each of the 14 quarters making up the life of the CDs, subject to a minimum return of 1.75%.

The return will be measured from the end of the immediately preceding quarter to the end of the current quarter. The return in each quarter can be positive or negative and will be subject to a cap of 3% to 5% that will be set at pricing.

Beginning Dec. 15, 2011, the CDs will be putable on March 15, June 15, Sept. 15 and Dec. 15 of each year. The redemption amount may be less than par.

The CDs (Cusip 90521ADM7) are expected to price Nov. 22 and settle Nov. 24.

UnionBanc Investment Services, LLC is the agent. Incapital LLC is the distributor.

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