By Wendy Van Sickle
Columbus, Ohio, May 30 – Bank of Montreal priced $1.7 million of 0% contingent risk absolute return notes due May 31, 2019 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
A barrier event occurs if the ETF ever closes below its 74.5% barrier level on any day during the life of the notes.
If the ETF finishes above its initial level, the payout at maturity will be par plus the gain.
If the ETF falls but never closes below its 74.5% barrier level, the payout will be par plus the absolute value of the return.
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
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Underlying ETF: | iShares MSCI EAFE
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Amount: | $1.7 million
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Maturity: | May 31, 2019
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If ETF gains, par plus return; if ETF never closes below its 74.5% barrier, par plus absolute return; if ETF falls by more than 25.5%, full exposure to any losses
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Initial level: | $66.05
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Barrier level: | $49.21, 74.5% of initial level
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Pricing date: | May 26
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Settlement date: | May 31
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Agent: | BMO Capital Markets Corp.
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Fees: | 0%
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Cusip: | 06367TXA3
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