Harris plans to price contingent annual payout CDs linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., June 9 - Harris NA plans to price principal-protected contingent annual payout certificates of deposit due June 30, 2015 linked to a basket of common stocks, according to a term sheet.

The basket includes Costco Wholesale Corp., CVS Caremark Corp., Exxon Mobil Corp., Home Depot, Inc., Honeywell International Inc., McDonald's Corp., Microsoft Corp., Monsanto Corp., Nokia Corp. and Wells Fargo & Co.

Interest is payable on June 30 of each year and will equal the sum of the weighted returns of the basket stocks. The coupon payment each year will be subject to a floor of zero, and each stock's return will have a floor of negative 35% and a cap of 12% to 16%. The exact cap will be set at pricing.

The payout at maturity will be par.

The CDs are expected to price June 25 and settle June 30.

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