SunTrust Bank plans to price certificates of deposit linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Aug. 6 - SunTrust Bank plans to price 0% certificates of deposit due Aug. 29, 2014 linked to the S&P 500 index, according to a term sheet.

If the index's closing level on an annual observation date is greater than or equal to its initial level, the CDs will pay a coupon of 6.5% for that annual interest period. If the index closes below its initial level, no coupon will be paid.

The annual observation dates are Aug. 25, 2010, Aug. 25, 2011, Aug. 27, 2012, Aug. 26, 2013 and Aug. 25, 2014.

Beginning Sept. 15, 2010, the CDs will be putable on quarterly early redemption dates. The redemption amount will be calculated differently than the payout at maturity, will include an early withdrawal penalty and may be less than par.

The CDs will price Aug. 24 and settle Aug. 28.

Incapital LLC is the distributor.

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