Union Bank to price certificates of deposit linked to four currencies

By Angela McDaniels

Tacoma, Wash., July 6 - Union Bank, NA plans to price zero-coupon principal-protected market-linked certificates of deposit due July 28, 2014 linked to a basket of currencies, according to a term sheet.

The basket contains equal weights of the Australian dollar, Brazilian real, Canadian dollar and Norwegian krone.

The payout at maturity will be par plus 105% to 135% of the basket return, subject to a minimum return of 4%. The exact participation rate will be set at pricing.

The basket return will be positive if the basket currencies appreciate relative to the U.S. dollar.

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

The CDs (Cusip: 90521ACG1) are expected to price July 26 and settle July 28.

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

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