BMO Harris plans annual digital yield generator CDs linked to stocks

By Susanna Moon

Chicago, Sept. 12 - BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due Sept. 30, 2020 linked to a basket of 10 equally weighted stocks, according to a term sheet.

The underlying companies are Bristol-Myers Squibb Co., Lorillard, Inc., Vodafone Group plc, Costco Wholesale Corp., Seagate Technology plc, Williams Partners LP, Ford Motor Co., Procter & Gamble Co., St Jude Medical, Inc. and McDonald's Corp.

The CDs will pay an annual coupon equal to the sum of the weighted stock performances of the basket stocks, subject to a minimum coupon of 0.5%.

If a stock's return is greater than zero, its performance will be equal to the digital coupon, which is expected to be 6% to 8% 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 10%.

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

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

The notes will price on Sept. 24 and settle on 27.

The Cusip number is 05573J SM7.

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