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

By Toni Weeks

San Luis Obispo, Calif., May 8 - Bank of the West plans to price contingent variable-income market-linked certificates of deposit due May 29, 2020 linked to a basket of 10 commodity futures indexes, according to a term sheet.

The underlying indexes are the S&P GSCI Cocoa Dynamic Roll index ER, S&P GSCI Lead Dynamic index ER, S&P GSCI Coffee Dynamic index ER, S&P GSCI Natural Gas Dynamic index ER, S&P GSCI Corn Dynamic index ER, S&P GSCI Nickel Dynamic index ER, S&P GSCI Cotton Dynamic index ER, S&P GSCI Sugar Dynamic index ER, S&P GSCI Gold Dynamic index ER and the S&P GSCI Wheat Dynamic Roll index.

Interest is payable annually and will equal the average of the commodity indexes' returns, subject to a minimum interest rate of 0.4%.

If a commodity index return is positive or flat, its performance will be equal to the auto cap. Otherwise, its performance will be the greater of the return and negative 20%. The auto cap is expected to be 5% to 6% and will be set at pricing.

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

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

The CDs will price May 24 and settle May 30.

The Cusip number is 06426XGX2.

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