Harris plans to price annual income range CDs linked to stock basket

By Angela McDaniels

Tacoma, Wash., Aug. 7 - Harris NA plans to price principal-protected annual income range certificates of deposit due Aug. 31, 2015 linked to a basket of stocks, according to a term sheet.

The basket includes equal weights of 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.

The CDs will pay interest on Aug. 31 of each year. The coupon will equal the sum of the weighted returns of the basket stocks, subject to a floor of zero. Each stock's return will have a floor of negative 35% and a cap of 12% to 16%, with the exact cap to be set at pricing.

The CDs are expected to price Aug. 26 and settle Aug. 31.

Incapital LLC is the distributor.

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