BMO Harris plans seven-year annual digital yield CDs tied to 10 stocks

By Marisa Wong

Madison, Wis., Nov. 9 - BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due Nov. 29, 2019 linked to a basket of stocks, according to a term sheet.

The equally weighted basket stocks are Avon Products, Inc., American Eagle Outfitters, Inc., Cablevision Systems Corp., Cliff Natural Resources Inc., Exelon Corp., Hewlett-Packard Co., HollyFrontier Corp., Lorillard, Inc., Newmont Mining Corp. and Seagate Technology plc.

The CDs will pay a coupon in November of each year equal to the sum of the weighted stock performances of the basket stocks, subject to a minimum coupon of 0.15%.

If a stock's return is greater than zero, its performance will be equal to the digital coupon, which is expected to be 5.5% to 7.5% per year 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 20%.

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

The CDs are expected to price Nov. 27 and settle Nov. 30.

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

The Cusip number is 05573JLB8.

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