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

By Marisa Wong

Madison, Wis., Aug. 6 - Bank of the West plans to price income advantage market-linked certificates of deposit due Aug. 31, 2020 linked to a basket of commodity future 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 Lead Dynamic Roll Index ER, the S&P GSCI Natural Gas Dynamic Roll Index ER and the S&P GSCI Wheat Dynamic Roll Index ER.

Each year, the CDs will pay a coupon equal to the performance-based rate, subject to a minimum interest rate of 1%.

If each index's closing level is greater than or equal to its initial index level on the valuation date, the performance-based rate will be 5.75%. 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 the distributor.

The CDs will price Aug. 26 and settle Aug. 29.

The fees will be up to 4%.

The Cusip number is 06426XHP8.

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