Harris plans callable leveraged curve steepener CDs tied to CMS rates

By Susanna Moon

Chicago, Aug. 11 - Harris NA plans to price callable leveraged curve steepener certificates of deposit due Aug. 25, 2023, according to a term sheet.

Interest will be payable quarterly.

Interest will accrue at 8% annually for the first two years. Thereafter, interest will be seven times spread between the 30-year Constant Maturity Swap rate and the two-year CMS rate, capped at 12% per year.

Beginning Aug. 25, 2009, the CDs will be callable at par on any interest payment date.

If the CDs are not called, the payout at maturity will be par.

The notes are expected to price on Aug. 20 and settle on Aug. 25.

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