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

By Angela McDaniels

Tacoma, Wash., April 2 - BMO Harris Bank NA plans to price semiannual digital yield generator certificates of deposit due April 30, 2018 linked to a basket of stocks, according to a term sheet.

The equally weighted basket stocks are Altria Group Inc., Archer-Daniels-Midland Co., Avon Products Inc., Barrick Gold Corp., Best Buy Co. Inc., Cablevision Systems Corp., JPMorgan Chase & Co., Lockheed Martin Corp., Walgreen Co. and Whirlpool Corp.

The CDs will pay a coupon in April and October 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 3.5% to 5.5% per semiannual period, which corresponds to 7% to 11% 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 20%.

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

The CDs (Cusip: 05573JGC2) are expected to price April 25 and settle April 30.

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

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