Union Bank to price contingent return CDs linked to BRIC currencies

By Angela McDaniels

Tacoma, Wash., June 3 - Union Bank, NA plans to price contingent currency basket return market-linked certificates of deposit due June 28, 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.

Interest will be payable annually. The interest rate will be equal to the maximum indexed interest rate if the basket return on the observation date for that year is greater than or equal to zero. Otherwise, it will be 0.5%. The maximum indexed interest rate is expected to be 2.25% to 2.5% and will be set at pricing.

The payout at maturity will be par plus the final coupon.

Beginning June 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 2.5%.

The CDs are expected to price June 26 and settle June 28.

The Cusip number is 90521AMY1.

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