Union Bank plans four-year market-linked CDs tied to S&P 500 index

By Toni Weeks

San Diego, June 5 - Union Bank, NA plans to price market-linked certificates of deposit due June 29, 2016 linked to the S&P 500 index, according to a disclosure supplement.

The payout maturity will be par plus the indexed interest amount, subject to a floor of 2% and a maximum return of 52% to 68% that will be set at pricing.

The indexed interest amount is the sum of the 16 quarterly percentage changes multiplied by the principal amount on the maturity date. Each quarterly percentage change is subject to a cap of 3.25% to 4.25%, but there is no floor if the change for a quarter is negative. The actual cap will be set at pricing.

The notes are callable at par on the 15th of each March, June, September and December beginning June 15, 2013.

The CDs (Cusip: 90521AJY5) are expected to price June 26 and settle June 29.

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

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