Harris plans digital contingent annual income CDs linked to ADR basket

By Angela McDaniels

Tacoma, Wash., Sept. 8 - Harris NA plans to price emerging markets digital contingent annual income range certificates of deposit due Sept. 30, 2016 linked to an equally weighted basket of American Depositary Receipts, according to a term sheet.

The basket includes Anglogold Ashanti Ltd., Companhia Energetica de Minas Gerais, Honda Motor Co., Ltd., Itau Unibanco Holding SA, Mobile Telesystems OJSC, Petroleo Brasileiro SA, Royal Philips Electronics, Sanofi-Aventis, TAM SA and Veolia Environnement SA.

Interest will be payable in September of each year and will equal the sum of the weighted performances of the basket ADRs, subject to a floor of zero.

If an ADR's return is positive, its performance will be equal to the coupon cap, which is expected to be 7% to 9% and will be set at pricing. If an ADR's return is negative, its performance will be the greater of the return and negative 30%.

The payout at maturity will be par.

The CDs (Cusip: 41456TJV2) will price Sept. 27 and settle Sept. 30.

Incapital LLC is the distributor.

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