Harris to price contingent annual payout CDs linked to stock basket

By Angela McDaniels

Tacoma, Wash., March 3 - Harris NA plans to price principal-protected contingent annual payout certificates of deposit due March 31, 2015 linked to a basket of 10 common stocks, according to a term sheet.

The basket includes equal weights of Burlington Northern Santa Fe Corp., Coca-Cola Co., ConocoPhillips, General Electric Co., Google Inc., Johnson & Johnson, Kraft Foods Inc., Pfizer Inc., Procter & Gamble Co. and Wells Fargo & Co.

Investors will receive a coupon payment in March of each year equal to the basket return. The interest rate for each coupon payment date will have a cap of 12% and a floor of zero.

In calculating the basket return each year, the initial price of each stock will be its closing price on the pricing date and the final price will be the stock's closing price on the third business day prior to the coupon payment date.

The payout at maturity will be par.

The CDs will price March 26 and settle March 31.

Incapital LLC is the distributor.

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