BMO Harris plans digital yield generator CDs linked to stock basket

By Marisa Wong

Morgantown, W.Va., Feb. 8 – BMO Harris Bank NA plans to price annual digital yield generator certificates of deposit due Feb. 28, 2022 linked to an equally weighted basket of stocks, according to a term sheet.

The basket stocks are Target Corp., AT&T Inc., Sysco Corp., Clorox Co., Altria Group, Inc., Ford Motor Co., Home Depot, Inc., Costco Wholesale Corp., Southern Co., Duke Energy Corp.

Each year, the CDs will pay a coupon equal to the sum of the weighted performances of the basket stocks. If a stock’s return is greater than zero, its performance will be equal to the digital coupon, which is expected to be 5.4% to 6.4% per year and will be set at pricing. If a stock’s return is less than or equal to zero, its performance will be equal to its return, subject to a floor of negative 10%.

The payout at maturity will be par plus the final coupon.

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

The CDs will price Feb. 23.

The Cusip number is 05581WVE2.

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