BMO Harris plans digital yield generator CDs due 2022 tied to stocks

New York, May 9 – BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due May 31, 2022 linked to a basket of stocks, according to a term sheet.

The equally weighted basket stocks are AT&T Inc., Chevron Corp., Ford Motor Co., GlaxoSmithKline plc, HSBC Holdings plc, Mattel, Inc., Seagate Technology plc, Southern Co., Target Corp. and Verizon Communications Inc.

The CDs will pay a coupon each year equal to the sum of the weighted stock performances of the basket stocks, subject to a minimum 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 5% to 6% 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, if any.

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

The CDs are expected to price on May 25 and settle on May 31.

The Cusip number is 05581WPE9.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.