SunTrust Bank plans CDs linked to gold

By Jennifer Chiou

New York, April 1 - SunTrust Bank plans to price certificates of deposit due April 23, 2014 linked to gold, according to a term sheet.

If the price of gold on an observation date is at or above the initial level, the coupon rate will be at least 6% per year. The projected range is 6% to 7%, and the actual rate will be set at pricing.

If the price of gold on an observation date is less than the initial level, the coupon rate will be 1%. The observation dates will be semiannual.

The payout at maturity will be par.

The securities are putable on quarterly early redemption dates beginning on March 15, 2010.

The CDs will price on April 16 and settle on April 22.

Incapital LLC is the distributor.

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