BMO Harris plans annual income CDs with minimum coupon on stock basket

By Marisa Wong

Morgantown, W.Va., June 12 – BMO Harris Bank NA plans to price annual income with minimum interest rate certificates of deposit due June 30, 2022 linked to an equally weighted basket of stocks, according to a term sheet.

The basket stocks are Target Corp., Home Depot, Inc., Verizon Communications Inc., Ford Motor Co. and Exxon Mobil Corp.

Each year, the CDs will pay a coupon equal to either the minimum interest rate of 0.5% or, if a performance event has occurred on the related coupon determination date, the maximum interest rate of 11.5% to 12.5% which will be set at pricing. A performance event occurs if the return for each stock is greater than or equal to zero.

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 June 26.

The Cusip number is 05581WYK5.

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