BMO Harris plans digital yield generator CDs linked to stock basket

By Angela McDaniels

Tacoma, Wash., Sept. 11 – BMO Harris Bank NA plans to price annual digital yield generator with minimum interest rate certificates of deposit due Sept. 29, 2023 linked to an equally weighted basket of stocks, according to a term sheet.

The basket stocks are Altria Group, Inc., Bristol-Myers Squibb Co., CenturyLink Inc., Costco Wholesale Corp., L Brands, Inc., Mattel, Inc., Qualcomm Inc., Seagate Technology plc, Southern Co. and Williams Partners LP.

Each year, the CDs will pay a coupon equal to the sum of the weighted performances of the basket stocks, subject to a minimum interest rate of 0.25% per year. If a stock’s return is greater than zero, its performance will be equal to the digital coupon, which is expected to be 6% to 7% 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 Sept. 26.

The Cusip number is 05581WRK3.

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