Bank of the West plans income advantage CDs due 2018 linked to stocks

By Angela McDaniels

Tacoma, Wash., Oct. 9 - Bank of the West plans to price income advantage market-linked certificates of deposit due Oct. 30, 2018 linked to a basket of common stocks, according to a term sheet.

The basket includes Altria Group Inc., Intel Corp., Lorillard Inc., Verizon Communications Inc. and Williams Cos., Inc.

Each year, the CDs will pay a coupon equal to the performance-based rate, subject to a minimum interest rate of 0.35%.

If each stock's closing price is greater than or equal to its initial price on the valuation date for that year, the performance-based rate will be 6%. If the closing level of one or more stocks is less than its initial stock level, the performance-based rate will be zero.

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

BNP Paribas Securities Corp. is the agent. Advisors Asset Management, Inc. is the distributor. The fees will be up to 2.25%.

The CDs will price Oct. 25 and settle Oct. 30.

The Cusip number is 06426XHX1.

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