Published on 11/28/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $127,000 13% reverse exchangeables linked to Delta
By Angela McDaniels
Tacoma, Wash., Nov. 28 - Bank of Montreal priced $127,000 of reverse exchangeable notes due Feb. 29, 2012 linked to the common stock of Delta Air Lines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes carry a coupon of 13% per year. Interest is payable monthly.
The payout at maturity will be par unless Delta stock closes below the trigger price - 70% of the initial share price - during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of shares of Delta stock equal to $1,000 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Reverse exchangeable notes
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Underlying stock: | Delta Air Lines, Inc. (Symbol: DAL)
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Amount: | $127,000
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Maturity: | Feb. 29, 2012
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Coupon: | 13%, payable monthly
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Price: | Par
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Payout at maturity: | If Delta stock closes below trigger price during life of notes and final share price is less than initial share price, a number of Delta shares equal to $1,000 divided by initial share price or equivalent amount in cash; otherwise, par
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Initial share price: | $7.12
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Trigger price: | $4.98, 70% of initial share price
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Pricing date: | Nov. 23
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Settlement date: | Nov. 29
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.75%
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Cusip: | 06366QH91
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