Bank of the West plans contingent income CDs due 2020 linked to stocks

By Toni Weeks

San Luis Obispo, Calif., March 8 - Bank of the West plans to price contingent variable-income market-linked certificates of deposit due March 27, 2020 linked to a basket of common stocks, according to a term sheet.

The basket includes Altria Group, Inc., Barrick Gold Corp., Baxter International Inc., ConocoPhillips, Johnson & Johnson, Lorillard Inc., Merck & Co. Inc., Microsoft Corp., PPL 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'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 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 last coupon, if any.

The CDs will price March 22 and settle March 27.

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

The Cusip number is 06426XGG9.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.