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BMO Harris plans six-year annual digital yield CDs linked to 10 stocks
By Angela McDaniels
Tacoma, Wash., Nov. 9 - BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due Nov. 30, 2017 linked to a basket of stocks, according to a term sheet.
The equally weighted basket stocks are Altria Group Inc., Archer-Daniels-Midland Co., AT&T Inc., Bank of America Corp., Barrick Gold Corp., Caterpillar Inc., Eli Lilly & Co., Ford Motor Co., Lockheed Martin Corp. and Merck & Co. Inc.
The CDs will pay a coupon each November 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 25%.
The payout at maturity will be par plus the last coupon payment, if any.
The CDs (Cusip: 05573JCU6) are expected to price Nov. 23 and settle Nov. 29.
BMO Capital Markets Corp. is the agent. Incapital LLC is distributor.
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