Union Bank to price contingent return CDs linked to BRIC currencies

By Angela McDaniels

Tacoma, Wash., April 3 - Union Bank, NA plans to price 0% contingent currency basket return market-linked certificates of deposit due April 30, 2018 linked to a basket of currencies, according to a term sheet.

The basket includes the Brazilian real, the Russian ruble, the Indian rupee and the Chinese renminbi, each with a 25% weight.

If the final basket level is greater than the initial basket level, the payout at maturity will be par plus the greater of (a) the coupon rate and (b) the basket appreciation. Otherwise, the payout will be par. The coupon rate is expected to be 10% to 12% and will be set at pricing.

Beginning March 15, 2014, the CDs will be putable on March 15, June 15, Sept. 15 and Dec. 15 of each year.

UnionBanc Investment Services, LLC is the agent. Incapital LLC is distributor. Participating brokers will receive a placement fee of up to 3.5%.

The notes are expected to price April 25 and settle April 30.

The Cusip number is 90521AMM7.

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