Harris to price contingent annual payout CDs linked to 10 stocks

By Marisa Wong

Madison, Wis., July 20 - Harris NA plans to price principal-protected contingent annual payout certificates of deposit due July 29, 2016 linked to an equally weighted basket of common stocks, according to a term sheet.

The basket includes Altria Group, Inc., Apple Inc., Barrick Gold Corp., Coca-Cola Co., ConocoPhillips, Merck & Co., Inc., McDonald's Corp., Verizon Communications Inc., Wal-Mart Stores Inc. and Wells Fargo & Co.

Interest will be payable on July 30 of each year beginning July 30, 2011 and will equal the sum of the weighted performances of the basket stocks, subject to a floor of zero.

If a stock's return is positive, its performance will be equal to the coupon cap, which will be at least 8.5% to 10.5% and will be set at pricing. If a stock's return is negative, its performance will be the greater of the return and negative 25%.

The payout at maturity will be par.

The CDs (Cusip: 41456THJ1) will price July 27 and settle July 30.

Incapital LLC is the distributor.

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