Bank of the West plans CDs on S&P Capital IQ Stars Universe stocks

By Angela McDaniels

Tacoma, Wash., Dec. 6 - Bank of the West plans to price income advantage market-linked certificates of deposit due Dec. 26, 2019 linked to a basket of five common stocks selected from the S&P Capital IQ Stars Universe, according to a term sheet.

The underlying stocks are CME Group Inc., Intel Corp., Lorillard Inc., Merck & Co., Inc. and PPL Corp.

Each stock received a 4-Stars or 5-Stars ranking by S&P Capital IQ's Stock Appreciation Ranking System as of Nov. 18. According to S&P Capital IQ, a stock is given a 4-Stars ranking if its "total return is expected to outperform that of a relevant benchmark over the coming 12 months, with shares rising in price on an absolute basis" and is given a 5-Stars ranking if its "total return is expected to outperform the total return of a relevant benchmark by a wide margin over the coming 12 months, with shares rising in price on an absolute basis."

Interest is payable annually. If each stock's closing share price on the valuation date is greater than or equal to its initial share price, the coupon will be 7%. If the closing share price of one or more stocks is less than its initial share price, the coupon will be 0.5%.

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 3.25%.

The Cusip number is 06426XJL5.

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