Union Bank plans market-linked CDs due 2016 linked to S&P 500 index

By Jennifer Chiou

New York, Nov. 1 - Union Bank, NA plans to price zero-coupon market-linked certificates of deposit due Nov. 29, 2016 linked to the S&P 500 index, according to a term sheet.

The payout at maturity will be par plus the greater of the indexed interest amount and the 3% minimum indexed interest amount, which equates to a 0.49% annual percentage yield. The indexed interest amount will equal the average of the closing index value on the 23rd of each of the quarters beginning on Aug. 23, 2011. The final observation date will be Nov. 23, 2016.

Beginning Dec. 15, 2011, the CDs will be putable on March 15, June 15, Sept. 15 and Dec. 15 of each year. The redemption amount may be less than par.

The CDs (Cusip: 90521ADS4) are expected to price on Nov. 23 and settle on Nov. 29.

UnionBanc Investment Services, LLC is the agent. Incapital LLC is the distributor.

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