Harris plans digital contingent annual payout CDs tied to stock basket

By Angela McDaniels

Tacoma, Wash., Aug. 9 - Harris NA plans to price principal-protected digital contingent annual payout certificates of deposit due Aug. 31, 2016 linked to an equally weighted basket of common stocks, according to a term sheet.

The basket includes Altria Group, Inc., Apple Inc., Barrick Gold Corp., Coca-Cola Co., ConocoPhillips, Merck & Co., Inc., McDonald's Corp., Verizon Communications Inc., Wal-Mart Stores Inc. and Wells Fargo & Co.

Interest will be payable in August of each year and will equal the sum of the weighted performances of the basket stocks, subject to a floor of zero.

If a stock's return is positive, its performance will be equal to the coupon cap, which is expected to be 7.5% to 9.5% and will be set at pricing. If a stock's return is negative, its performance will be the greater of the return and negative 25%.

The payout at maturity will be par.

The CDs (Cusip: 41456TJJ9) will price Aug. 26 and settle Aug. 31.

Incapital LLC is the distributor.

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