Harris plans six-year contingent annual payout CDs tied to 10 stocks

By Angela McDaniels

Tacoma, Wash., July 7 - Harris NA plans to price principal-protected contingent annual payout certificates of deposit due July 31, 2015 linked to an equally weighted 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 July 31 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 will price July 28 and settle July 31.

Incapital LLC is the distributor.

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