Harris to price six-year annual income generator CDs linked to stock basket

By Jennifer Chiou

New York, April 1 - Harris NA plans to price principal-protected annual income generator certificates of deposit due April 30, 2015 linked to a basket of 10 common stocks, according to a term sheet.

The basket includes equal weights of JPMorgan Chase & Co., Pepsico Inc., Procter & Gamble Co., Abbott Laboratories, Home Depot Inc., Caterpillar Inc., Kraft Foods Inc., General Electric Co., Dell Inc. and Exxon Mobil Corp.

Investors will receive a coupon payment in April of each year equal to the basket return. The interest rate for each coupon payment date will have a cap of 11% 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 on April 27 and settle on April 30.

Incapital LLC is the distributor.

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