East West Bank plans callable fixed-to-floating CMS spread CDs

By Susanna Moon

Chicago, Sept. 12 - East West Bank plans to price callable fixed-to-floating CMS spread certificates of deposit due Oct. 4, 2033 linked to the 30-year Constant Maturity Swap Rate and the five-year CMS rate, according to a term sheet.

Interest will be fixed at 10% for the first year. After that, it will accrue at 5 times the spread of the 30-year CMS rate minus the five-year CMS rate minus 35 basis points, up to a maximum interest rate of 10% per year. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The CDs will be callable at par on any interest payment date beginning on Oct. 4, 2014.

RBC Capital Markets Corp. is the placement agent. Advisors Asset Management, Inc. is the distributor.

The Cusip is 27579TPR5.

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