By Wendy Van Sickle
Columbus, Ohio, March 9 – Bank of Montreal priced $1 million of autocallable cash-settled notes with conditional interest payments due March 9, 2020 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly at a rate of 9.1% per year if each ETF closes above its coupon barrier, 60% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each ETF closes above its initial level on any quarterly call date beginning on Sept. 5, 2018.
The payout at maturity will be par unless either ETF finishes below the 60% trigger level, in which case investors will lose 1% for each 1% decline of the lesser-performing ETF from its initial level.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Autocallable cash-settled notes with conditional interest payments
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Underlying ETFs: | SPDR S&P Biotech ETF, iShares MSCI EAFE ETF
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Amount: | $1 million
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Maturity: | March 9, 2020
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Coupon: | 9.1%, payable quarterly if each ETF closes above coupon barrier on related observation date
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Price: | Par of $1,000
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Payout at maturity: | Par unless either fund finishes below its trigger level, in which case investors will be fully exposed to any losses of the lesser-performing ETF
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Call: | At par plus the coupon if each fund finishes above its initial level on any quarterly call date beginning Sept. 5, 2018
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Initial levels: | $91.96 for biotech, $69.42 for EAFE
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Barriers/triggers: | $55.18 for biotech, $41.65 for EAFE; 60% of initial levels
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Pricing date: | March 5
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Settlement date: | March 8
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.1%
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Cusip: | 06367T3V0
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