BMO Harris plans six-year digital yield generator CDs tied to stocks

By Jennifer Chiou

New York, June 13 - BMO Harris Bank NA plans to price semiannual digital yield generator certificates of deposit due June 29, 2018 linked to a basket of stocks, according to a term sheet.

The equally weighted basket stocks are Altria Group Inc., Cablevision Systems Corp., Eli Lilly & Co., Lorillard, Inc., Newmont Mining Corp., Vodafone Group plc, Walgreen Co., Western Refining Inc., Whirlpool Corp. and Williams Partners LP.

The CDs will pay a coupon in June and December of each year equal to the sum of the weighted stock 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 3% to 4% per semiannual period, which corresponds to 6% to 8% 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 15%.

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

The CDs (Cusip: 05575DAJ4) are expected to price on June 26 and settle on June 29.

BMO Capital Markets Corp. is the agent. Incapital LLC is the distributor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.