Published on 10/5/2016 in the Prospect News Structured Products Daily.
New Issue: BMO prices $989,000 contingent risk absolute return notes tied to iShares MSCI EAFE
By Wendy Van Sickle
Columbus, Ohio, Oct. 5 – Bank of Montreal priced $989,000 of 0% contingent risk absolute return notes with digital upside due Sept. 28, 2018 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund finishes above the initial level, the payout at maturity will be par plus the fund return.
If the fund falls but finishes at or above the 70.5% barrier level every day during the life of the notes, the payout will be par plus the absolute value of the return, up to a maximum return of $1,295 per $1,000 of notes.
Otherwise, investors will be fully exposed to any losses.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Contingent risk absolute return notes with digital upside
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Underlying ETF: | iShares MSCI EAFE
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Amount: | $989,000
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Maturity: | Sept. 28, 2018
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If ETF return is positive, par plus the return; if fund falls but never closes below 70.5% barrier any day during life of notes, par plus absolute value of return, up to a maximum downside redemption amount of $1,295 per $1,000 principal amount; otherwise, full exposure to any losses
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Initial level: | $58.99
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Barrier level: | $41.59, 70.5% of initial level
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Pricing date: | Sept. 27
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Settlement date: | Sept. 30
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Agent: | BMO Capital Markets Corp.
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Fees: | None
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Cusip; | 06367TKW9
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