Bank of the West plans seven-year contingent income CDs tied to stocks

By Susanna Moon

Chicago, April 4 - Bank of the West plans to price contingent variable-income market-linked certificates of deposit due April 29, 2020 linked to a basket of 10 stocks, according to a term sheet.

The underlying stocks are Altria Group, Inc., Barrick Gold Corp., ConocoPhillips, Lorillard Inc., Merck & Co., Inc., Nvidia Corp., PPL Corp., St. Jude Medical, Inc., Spectra Energy Corp. and Williams Cos., Inc.

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

If a stock 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 on April 24 and settle on April 29.

The Cusip number is 06426XGN4.

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