Published on 11/27/2013 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $1.53 million contingent risk notes on iShares MSCI EAFE
By Marisa Wong
Madison, Wis., Nov. 27 - Bank of Montreal priced $1.53 million of 0% contingent risk absolute return notes due Nov. 27, 2015 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
A barrier event will occur if the fund's closing share price is less than the barrier level on any day during the life of the notes. The barrier level is 72% of the initial share price.
If the fund return is positive, the payout at maturity will be par plus the fund return. If the fund return is not positive and a barrier event does not occur, the payout will be par plus the absolute value of the fund return. If the fund return is not positive and a barrier event does occur, investors will lose 1% for every 1% that the final share price is less than the initial share price.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Contingent risk absolute return notes
|
| Underlying ETF: | iShares MSCI EAFE
|
| Amount: | $1,533,000
|
| Maturity: | Nov. 27, 2015
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If fund return is positive, par plus fund return; if fund return is not positive and barrier event does not occur, par plus absolute value of fund return; if fund return is not positive and barrier event does occur, 1% loss for every 1% that final share price is less than initial share price
|
| Barrier event: | Fund's closing share price is less than barrier level on any day during life of notes
|
| Initial share price: | $66.15
|
| Barrier level: | $47.63, 72% of initial level
|
| Pricing date: | Nov. 22
|
| Settlement date: | Nov. 27
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | None
|
| Cusip: | 06366RSB2
|
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