BMO Harris plans digital yield generator CDs linked to stock basket

By Angela McDaniels

Tacoma, Wash., Nov. 13 – BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due Nov. 30, 2021 linked to an equally weighted basket of stocks, according to a term sheet.

The basket stocks are Chevron Corp., Coca-Cola Co., Exxon Mobil Corp., McDonald's Corp., Qualcomm Inc., Procter & Gamble Co., Southern Co., Target Corp., Verizon Communications Inc. and Vodafone Group plc.

Each year, the CDs will pay a coupon equal to the sum of the weighted performances of the basket stocks. If a stock’s return is greater than zero, its performance will be equal to the digital coupon, which is expected to be 5.15% to 6.15% per year and will be set at pricing. If a stock’s return is less than or equal to zero, its performance will be equal to its return, subject to a floor of negative 10%.

The payout at maturity will be par plus the final coupon.

BMO Capital Markets Corp. is the agent. Incapital LLC is distributor.

The CDs will price Nov. 27.

The Cusip number is 05581WTG0.

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