BMO Harris plans digital yield generator CDs due 2024 tied to stocks

By Marisa Wong

Morgantown, W.Va., Aug. 18 – BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due Aug. 30, 2024 linked to a basket of stocks, according to a term sheet.

The equally weighted basket stocks are AT&T Inc., Ford Motor Co., HSBC Holdings plc, ING Groep NV, Las Vegas Sands Corp., L Brands, Inc., Seagate Technology plc, Royal Dutch Shell plc, Target Corp. and Vodafone Group plc.

The CDs will pay a coupon each year equal to the sum of the weighted performances of the basket stocks, subject to a minimum of 0%.

If a stock’s return is greater than zero, its performance will be equal to the digital coupon, which is expected to be 6.25% to 6.75% and will be set at pricing. If a stock’s return is less than or equal to zero, its performance will be the greater of the stock return and negative 10%.

The payout at maturity will be par plus the last coupon payment, if any.

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

The CDs are expected to price on Aug. 28.

The Cusip number is 05581WQY4.

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