Hampshire First plans annual income opportunity CDs tied to 10 stocks

By Angela McDaniels

Tacoma, Wash., Feb. 3 - Hampshire First Bank plans to price annual income opportunity certificates of deposit due Feb. 23, 2015 linked to a basket of common stocks, according to a term sheet.

The equally weighted basket includes AT&T Inc., Bank of America Corp., Bristol-Myers Squibb Co., Newmont Mining Corp., Potash Corp. of Saskatchewan, Inc., Research In Motion Ltd., Schlumberger Ltd., Southern Co., Tiffany & Co., Waste Management Inc., WellPoint Inc. and Yahoo! Inc.

The CDs will pay a coupon in February of each year equal to the average of the returns of the basket stocks. The coupon will be subject to a floor of zero, and the return of each basket stock will be subject to a floor of negative 40% and a cap of 9% to 12%. The exact cap will be set at pricing.

The payout at maturity will be par.

The CDs are expected to price Feb. 23 and settle Feb. 26.

Advisors Asset Management, Inc. is the distributor.

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