Bank of the West plans seven-year contingent income CDs on 10 stocks

By Toni Weeks

San Diego, Dec. 6 - Bank of the West plans to price contingent variable-income market-linked certificates of deposit due Dec. 28, 2018 linked to a basket of stocks, according to a term sheet.

The underlying stocks are AT&T Inc., Best Buy Co., Inc., CenturyLink, Inc., Cliffs Natural Resources Inc., Dow Chemical Co., Lockheed Martin Corp., M&T Bank Corp., Newmont Mining Corp., Reynolds American Inc. and Xerox 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 7.25% to 9.25%. 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: 06426XCQ1) will price Dec. 22 and settle Dec. 28.

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

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