BMO Harris plans annual digital yield CDs due 2019 linked to 10 stocks

By Angela McDaniels

Tacoma, Wash., Nov. 15 - BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due Nov. 29, 2019 with minimum interest rate linked to a basket of stocks, according to a term sheet.

The equally weighted basket stocks are Best Buy Co., Inc., Bristol-Myers Squibb Co., Costco Wholesale Corp., Dollar General Corp., Lorillard, Inc., McDonald's Corp., Seagate Technology plc, Vodafone Group plc, Williams Partners LP and Walgreen Co.

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 0.25%.

If a stock's return is greater than zero, its performance will be equal to the digital coupon, which is expected to be 5% to 7% 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.

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

The CDs are expected to price Nov. 25 and settle Nov. 29.

The Cusip number is 05573JUB8.

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