BMO Harris plans annual digital yield generator CDs linked to stocks

By Angela McDaniels

Tacoma, Wash., May 8 - BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due May 29, 2020 linked to a basket of stocks, according to a term sheet.

The equally weighted basket stocks are American Eagle Outfitters, Inc., Bristol-Myers Squibb Co., Costco Wholesale Corp., Gannett Co., Inc., HollyFrontier Corp., Lorillard, Inc., Newmont Mining Corp., Seagate Technology plc, Vodafone Group plc and Williams Partners LP.

The CDs will pay a coupon in May 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 6.5% to 8.5% 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.

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

The CDs are expected to price May 28 and settle May 31.

The Cusip number is 05573JPH1.

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