BMO Harris plans annual digital yield generator CDs due 2021 on stocks

By Marisa Wong

Madison, Wis., May 16 - BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due May 28, 2021 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket stocks are Apple Inc., Bristol-Myers Squibb Co., Dollar General Corp., Ford Motor Co., Lorillard, Inc., McDonald's Corp., Potash Corp. of Saskatchewan Inc., Seagate Technology plc, Vodafone Group plc and Walgreen Co.

The CDs will pay a coupon each year equal to the sum of the weighted stock performances of the basket stocks, subject to a minimum of zero.

If a stock's return is greater than zero, its performance will be equal to the digital coupon, which is expected to be 9.5% to 10.5% and will be set at pricing. If a stock's return is less than or equal to zero, its performance will be the greater of the stock return and negative 15%.

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

BMO Capital Markets Corp. is the agent. Advisors Asset Management, Inc. is distributor.

The CDs are expected to price May 27 and settle May 30.

The Cusip number is 05573JYN8.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.