Bank of West plans contingent variable income CDs tied to commodities

By Susanna Moon

Chicago, April 5 - Bank of the West plans to price contingent variable income market-linked certificates of deposit due April 30, 2018 linked to a basket of futures indexes, according to a term sheet.

The underlying indexes are S&P GSCI Cocoa Dynamic Roll Index ER, S&P GSCI Coffee Dynamic Roll Index ER, S&P GSCI Cotton Dynamic Roll Index ER, S&P GSCI Gold Dynamic Roll Index ER, S&P GSCI Lead Dynamic Roll Index ER, S&P GSCI Natural Gas Dynamic Roll Index ER, S&P GSCI Nickel Dynamic Roll Index ER, S&P GSCI Silver Dynamic Roll Index ER, S&P GSCI Sugar Dynamic Roll Index ER and S&P GSCI Zinc Dynamic Roll Index ER.

Interest is payable annually at a rate equal to the average of the index performances, subject to a floor of zero.

If an index return is positive or flat, its performance will be fixed at 6.5% to 8.5%. Otherwise, its performance will be the greater of the return and negative 20%. The exact fixed percentage will be set at pricing.

The payout at maturity will be par.

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

The CDs will price on April 25 and settle on April 30.

The Cusip number is 06426XDP2.

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