SunTrust Bank plans CDs linked to S&P 500

By Jennifer Chiou

New York, Nov. 5 - SunTrust Bank plans to price 0% certificates of deposit due May 20, 2011 linked to the S&P 500, according to a term sheet.

The payout at maturity will be par plus any index gain, subject to a maximum return of 20% to 25%. The exact cap will be set at pricing.

The final index level used to calculate the index return will be the average of the index's closing levels on 30 monthly measurement dates.

Beginning Dec. 15, 2009, the CDs will be putable on quarterly early redemption dates. The redemption amount will be calculated differently than the payout at maturity, will include an early withdrawal penalty and may be less than par.

The CDs will price on Nov. 21 and settle on Nov. 26.

Incapital LLC is the distributor.

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