Bank of the West plans six-year market-linked CDs on commodity indexes

By Marisa Wong

Madison, Wis., Aug. 11 - Bank of the West plans to price contingent variable income market-linked certificates of deposit due Aug. 30, 2017 linked to a basket of commodity indexes, according to a term sheet.

The underlying indexes are S&P GSCI Cocoa Dynamic Roll Index ER, S&P GSCI Copper Dynamic Roll Index ER, S&P GSCI Corn Dynamic Roll Index ER, S&P GSCI Cotton Dynamic Roll Index ER, S&P GSCI Lead Dynamic Roll Index ER, S&P GSCI Nickel Dynamic Roll Index ER, S&P GSCI Silver Dynamic Roll Index ER, S&P GSCI Sugar Dynamic Roll Index ER, S&P GSCI Wheat Dynamic Roll Index ER and S&P GSCI Zinc Dynamic Roll Index ER.

Interest will be the greater of the average of the basket index performances and zero, payable annually.

If an index's return is positive or flat, its performance will be fixed at 7.5% to 10.5%. Otherwise, the performance will be the greater of the return and negative 20%. The exact fixed percentage will be set at pricing.

The payout at maturity will be par.

The CDs (Cusip: 06426XBR0) will price on Aug. 25 and settle Aug. 30.

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