Bank of the West plans contingent income CDs tied to basket of stocks

By Toni Weeks

San Diego, Nov. 7 - Bank of the West plans to price contingent variable income market-linked certificates of deposit due Nov. 28, 2018 linked to a basket of stocks, according to a term sheet.

The underlying stocks are Apollo Group, Inc., Arch Coal, Inc., Best Buy Co., Inc., Cliffs Natural Resources Inc., First Solar, Inc., Hewlett-Packard Co., Netflix, Inc., Newmont Mining Corp., Nvidia Corp. and Target Corp.

Interest is payable annually in an amount equal to the average of the stock returns, subject to a floor of zero.

If a stock's return is positive or flat, its performance will be fixed at 7% to 10%. Otherwise, its performance will be the greater of the stock return and negative 30%. The exact fixed percentage will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip: 06426XCJ7) will price Nov. 22 and settle Nov. 28.

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

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