Union Bank to price four-year market-linked CDs tied to gold price

By Jennifer Chiou

New York, Sept. 28 - Union Bank, NA plans to price zero-coupon capped return market-linked certificates of deposit due Oct. 27, 2014 linked to gold, according to a term sheet.

The payout at maturity will be par plus the gold return, subject to a minimum indexed interest amount of 2% and a maximum indexed interest amount of 80% to 112%. The exact cap will be set at pricing. Those indexed amounts translate to an annualized minimum of 0.5% and a maximum of 15.82% to 20.65% per year.

Beginning Sept. 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: 90521ADB1) will price on Oct. 25 and settle on Oct. 27.

UnionBanc Investment Services, LLC is the agent.

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