Harris to price contingent semiannual payout CDs linked to 10 stocks

By Marisa Wong

Madison, Wis., Aug. 3 - Harris NA plans to price principal-protected digital contingent semiannual payout certificates of deposit due Aug. 31, 2015 linked to an equally weighted basket of common stocks, according to a term sheet.

The basket includes Altria Group, Inc., Apple Inc., Barrick Gold Corp., Coca-Cola Co., ConocoPhillips, McDonald's Corp., Merck & Co., Inc., Verizon Communications Inc., Wal-Mart Stores, Inc. and Wells Fargo & Co.

Interest will be payable in August and February of each year beginning Feb. 28, 2011 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 equal the coupon cap, which will be at least 3.5% and will be set at pricing. If a stock's return is negative, its performance will be the greater of the return and negative 25%.

The payout at maturity will be par.

The CDs (Cusip: 41456TJC4) will price Aug. 26 and settle Aug. 31.

Incapital LLC is the distributor.

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