Bank of the West plans contingent variable-income CDs linked to stocks

By Angela McDaniels

Tacoma, Wash., Dec. 6 - Bank of the West plans to price contingent variable-income market-linked certificates of deposit due Dec. 28, 2020 linked to a basket of common stocks, according to a term sheet.

The underlying stocks are Altria Group Inc., AT&T Inc., Freeport-McMoRan Copper & Gold Inc., Lorillard Inc., Marathon Petroleum Corp., McDonald's Corp., Merck & Co., Inc., Pfizer Inc., Verizon Communications Inc. and Williams Cos., Inc.

Interest is payable annually and will equal the average of the stocks' performances, subject to a minimum interest rate of 0.75%.

If a stock's return is positive or flat, its performance will be equal to the auto cap. Otherwise, its performance will be the greater of the stock return and negative 15%. The auto cap is expected to be 6.75% to 7.25% and will be set at pricing.

The payout at maturity will be par.

BNP Paribas Securities Corp. is the agent. Advisors Asset Management, Inc. is distributor.

The CDs will price Dec. 20 and settle Dec. 26.

The fees will be up to 4%.

The Cusip number is 06426XJM3.

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