Bank of the West plans five-year contingent income CDs tied to stocks

By Toni Weeks

San Diego, Oct. 10 - Bank of the West plans to price contingent variable income market-linked certificates of deposit due Oct. 30, 2017 linked to a basket of stocks, according to a term sheet.

The underlying stocks are Altria Group, Inc., AT&T Inc., Bristol-Myers Squibb Co., Eli Lilly and Co., FirstEnergy Corp., General Mills Inc., Goldcorp Inc., Kinder Morgan Inc., Southern Co. and Whirlpool Corp.

Interest is payable annually and will equal the average of the stocks' performances, subject to a minimum interest rate of zero.

If a stock return is positive or flat, its performance will be equal to the auto cap. Otherwise, its performance will be the greater of the return and negative 20%. The auto cap is expected to be 4.5% to 6.5% and will be set at pricing.

The payout at maturity will be par plus the last coupon.

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

The CDs will price Oct. 25 and settle Oct. 30.

The Cusip number is 06426X EX4.

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