BMO Harris plans annual digital yield generator CDs on stock basket

By Toni Weeks

San Luis Obispo, Calif., Aug. 6 - BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due Aug. 31, 2020 linked to a basket of stocks, according to a term sheet.

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

The CDs will pay a coupon in August 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 8% to 10% 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.

The notes (Cusip: 05573JRQ9) are expected to price Aug. 27 and settle Aug. 30.

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

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