Harris plans contingent annual payout CDs tied to basket of 10 stocks

By Angela McDaniels

Tacoma, Wash., June 17 - Harris NA plans to price principal-protected contingent annual payout certificates of deposit due June 30, 2014 linked to an equally weighted basket of common stocks, according to a term sheet.

The basket includes Costco Wholesale Corp., CVS Caremark Corp., Exxon Mobil Corp., Home Depot, Inc., Honeywell International Inc., McDonald's Corp., Microsoft Corp., Monsanto Corp., Nokia Corp. and Wells Fargo & Co.

Interest is payable on June 30 of each year and will equal the sum of the weighted returns of the basket stocks. The coupon payment each year will be subject to a floor of zero, and each stock's return will be capped at 12% to 16%. The exact cap will be set at pricing.

The payout at maturity will be par.

The CDs will price June 25 and settle June 30.

Incapital LLC is the distributor.

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