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

By Angela McDaniels

Tacoma, Wash., May 9 - BMO Harris Bank NA plans to price semiannual digital yield generator certificates of deposit due May 31, 2018 linked to a basket of stocks, according to a term sheet.

The equally weighted basket stocks are Altria Group Inc., Barrick Gold Corp., Cablevision Systems Corp., CSX Corp., Eli Lilly & Co., HSBC Holdings plc, Lockheed Martin Corp., Royal Caribbean Cruises Ltd., Verizon Communications Inc. and Whirlpool Corp.

The CDs will pay a coupon in May and November 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 20%.

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

The CDs (Cusip: 05573JGW8) are expected to price May 25 and settle May 31.

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

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