Published on 7/21/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal lifts 25.25% reverse exchangeables linked to LDK Solar to $95,000
By Angela McDaniels
Tacoma, Wash., July 21 - Bank of Montreal increased the issue size of its reverse exchangeable notes due Oct. 19, 2011 linked to the common stock of LDK Solar Co., Ltd. to $95,000 from $88,000, according to an amended 424B2 filing with the Securities and Exchange Commission.
The three-month notes carry a coupon of 25.25% per year. Interest is payable monthly.
The payout at maturity will be par unless LDK Solar 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 LDK Solar 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: | LDK Solar Co., Ltd. (Symbol: LDK)
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Amount: | $95,000, increased from $88,000
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Maturity: | Oct. 19, 2011
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Coupon: | 25.25%, payable monthly
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Price: | Par
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Payout at maturity: | If LDK Solar stock closes below trigger price during life of notes and final share price is less than initial share price, 154.5595 LDK Solar shares or equivalent amount in cash; otherwise, par
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Initial share price: | $6.47
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Trigger price: | $4.53, 70% of initial share price
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Pricing date: | July 14
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Settlement date: | July 19
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.75%
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Cusip: | 06366QQQ3
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