Bank of the West plans CDs linked to stocks with 0.3% minimum coupon

By Angela McDaniels

Tacoma, Wash., Aug. 6 - Bank of the West plans to price contingent variable income market-linked certificates of deposit due Aug. 30, 2019 with a minimum annual interest payment linked to a basket of common stocks, according to a term sheet.

The basket includes AT&T Inc., Duke Energy Corp., Eli Lilly & Co., Goldcorp Inc., Hewlett-Packard Co., Johnson & Johnson, Kellog Co., Mattel, Inc., McDonald's Corp. and Southern Co.

Interest is payable annually and will equal the average of the stocks' performances, subject to a minimum interest rate of 0.3%.

If a stock's return is positive or flat, its performance will be equal to the auto cap. Otherwise, its performance will be the greater of the stock return and negative 30%. The auto cap is expected to be 6% to 8% and will be set at pricing.

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

The CDs will price Aug. 27 and settle Aug. 30.

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

The Cusip number is 06426XEN6.

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