Bank of the West plans contingent income CDs due 2019 linked to stocks with minimum coupon

By Angela McDaniels

Tacoma, Wash., June 1 - Bank of the West plans to price contingent variable income market-linked certificates of deposit due June 28, 2019 linked to a basket of common stocks, according to a term sheet.

The basket includes Altria Group, Inc., Apple Inc., AT&T Inc., Campbell Soup Co., ConocoPhillips, Eli Lilly & Co., Exelon Corp., Goldcorp Inc., St. Jude Medical, Inc. and Valero Energy Corp.

Interest is payable annually and will equal the average of the stocks' performances, subject to a minimum interest rate of 0.3%.

If a stock's return is positive or flat, its performance will be equal to the auto cap. Otherwise, its performance will be the greater of the stock return and negative 30%. The auto cap is expected to be 6% to 8% and will be set at pricing.

The payout at maturity will be par plus the last coupon.

The CDs (Cusip: 06426XEA4) will price June 26 and settle June 29.

BNP Paribas Securities Corp. is the agent. Advisors Asset Management, Inc. is the distributor.

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