Bank of the West plans income advantage CDs tied to commodity indexes

By Marisa Wong

Madison, Wis., April 11 - Bank of the West plans to price income advantage market-linked certificates of deposit due April 29, 2021 linked to a basket of commodity futures indexes, according to a term sheet.

The basket includes the S&P GSCI Cocoa Dynamic Roll Index ER, the S&P GSCI Coffee Dynamic Roll Index ER, the S&P GSCI Corn Dynamic Roll Index ER, the S&P GSCI Lead Dynamic Roll Index ER and the S&P GSCI Natural Gas Dynamic Roll Index ER.

Each year, the CDs will pay a coupon equal to the performance-based rate or 1%, whichever is greater.

If each index's closing level is greater than or equal to its initial index level on the valuation date for that year, the performance-based rate will be 7%. If the closing level of one or more indexes is less than its initial index level, the performance-based rate will be zero.

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

BNP Paribas Securities Corp. is the agent. Advisors Asset Management, Inc. is distributor.

The CDs will price April 24 and settle April 29.

The fees will be up to 4.1%.

The Cusip number is 06426XKL3.

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