SunTrust Bank plans CDs linked to index basket

By E. Janene Geiss

Philadelphia, Feb. 9 - SunTrust Bank plans to price 0% principal-protected certificates of deposit due Feb. 18, 2014 linked to equal weights of the S&P 500, Dow Jones Euro Stoxx 50 and Nikkei 225 indexes, according to a term sheet.

The payout at maturity will be par plus any basket gain, capped at between 40% and 50%. Investors will receive at least par.

The CDs will be putable on quarterly early redemption dates beginning March 15, 2010. The redemption amount will be calculated differently than the payout at maturity and will include an early withdrawal penalty.

There is no call feature for the CDs, which will price Feb. 20 and settle Feb. 26.

SunTrust Robinson Humphrey, Inc. and SunTrust Investment Services, Inc. will be the agents. Incapital LLC is the distributor.

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