BMO Harris plans annual digital yield CDs due 2017 linked to stocks

By Angela McDaniels

Tacoma, Wash., Dec. 6 - BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due Dec. 29, 2017 linked to a basket of stocks, according to a term sheet.

The equally weighted basket stocks are Altria Group Inc., Archer-Daniels-Midland Co., AT&T Inc., Bank of America Corp., Barrick Gold Corp., Caterpillar Inc., Eli Lilly & Co., Ford Motor Co., Lockheed Martin Corp. and Merck & Co. Inc.

The CDs will pay a coupon each December equal to the sum of the weighted performances of the basket stocks, subject to a minimum coupon of 0%. If a stock's return is greater than zero, its performance will be equal to the digital coupon, which is expected to be 6% to 8% and will be set at pricing. If a stock's return is less than or equal to zero, its performance will be the greater of the stock return and negative 30%.

The payout at maturity will be par plus the last coupon payment, if any.

The CDs (Cusip: 05573JDH4) are expected to price Dec. 22 and settle Dec. 30.

BMO Capital Markets Corp. is the agent. Advisors Asset Management, Inc. is distributor.

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