SunTrust pricing four-year CDs linked to Brazilian real versus dollar

By Angela McDaniels

Tacoma, Wash., Aug. 25 - SunTrust Bank expected to price 0% certificates of deposit due Aug. 22, 2014 linked to the Brazilian real on Aug. 25, according to a preliminary term sheet.

If the real appreciates relative to the dollar, the payout at maturity will be par plus 50%. Otherwise, the payout will be par plus a fixed payment of 13% to 13.75%, with the exact fixed payment to be set at pricing.

Beginning Sept. 15, 2010, the CDs will be putable on March 15, June 15, Sept. 15 and Dec. 15 of each year. The redemption amount will be calculated differently than the payout at maturity, will include an early withdrawal penalty and could be less than par.

The settlement date is Aug. 31.

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