Harris plans six-year semiannual digital yield generator CDs on stocks

By Jennifer Chiou

New York, Dec. 2 - Harris NA plans to price semiannual digital yield generator certificates of deposit due Dec. 30, 2016 linked to an equally weighted basket of common stocks, according to a term sheet.

The basket includes Apple, Inc., Barrick Gold Corp., ConAgra Foods Inc., Duke Energy, Eli Lilly & Co., Exxon Mobil Corp., Home Depot Inc., Johnson & Johnson, Procter & Gamble Co. and Verizon Communications Inc.

Interest will be payable the last day of June and December of each year and will equal the sum of the weighted performances of the basket stocks, subject to a floor of zero.

If a stock's return is positive, its performance will be equal to a digital coupon of 2% to 4%. If a stock's return is negative, its performance will be the greater of the return and negative 15%.

The payout at maturity will be par.

The CDs (Cusip: 41456TKY4) will price on Dec. 28 and settle on Dec. 31.

Incapital LLC is the distributor.

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