Bank of the West plans contingent variable income CDs linked to stocks

By Susanna Moon

Chicago, June 7 - Bank of the West plans to price seven-year contingent variable income market-linked certificates of deposit linked to a basket of stocks, according to a term sheet.

The underlying companies are Altria Group, Inc., Apple Inc., AT&T, Inc., Campbell Soup Co., ConocoPhillips, Eli Lilly & Co., Exelon Corp., Goldcorp Inc., St. Jude Medical Inc. and Valero Energy Corp.

Interest is payable annually at a rate equal to the average of the stock performances, with a floor of 0.3%.

If a stock's return is positive or flat, its performance will be fixed at 6% to 8%. 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.

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

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