United Community Bank to price callable leveraged CMS steepener CDs

By Angela McDaniels

Tacoma, Wash., Oct. 17 - United Community Bank plans to price callable leveraged CMS steepener certificates of deposit due Nov. 10, 2031 linked to the 10-year and two-year Constant Maturity Swap rates, according to a term sheet.

The interest rate will be 5% for the first year. After that, the interest rate will be 4 times the spread of the 10-year CMS rate over the two-year CMS rate minus 50 basis points, subject to a maximum of 5% per year. Interest is payable quarterly and cannot be less than zero.

The payout at maturity will be par.

Beginning Nov. 10, 2012, the CDs will be callable at par on any interest payment date.

The CDs (Cusip: 90984P3Q6) will price Nov. 7 and settle Nov. 10.

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