Bank of the West plans contingent variable-income CDs linked to stocks

By Angela McDaniels

Tacoma, Wash., June 13 - Bank of the West plans to price contingent variable-income market-linked certificates of deposit due June 29, 2020 linked to a basket of common stocks, according to a term sheet.

The basket includes Aflac Inc., AT&T Inc., Duke Energy Corp., Garmin Ltd., Lorillard Inc., PPL Corp., Reynolds American Inc., Southern Copper Corp., Verizon Communications Inc. and Williams Cos., Inc.

Interest is payable annually and will equal the average of the stocks' performances, subject to a minimum interest rate of 0.4%.

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 20%. The auto cap is expected to be 5% to 6% and will be set at pricing.

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

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

The CDs will price June 24 and settle June 27.

The Cusip number is 06426XHB9.

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