Published on 10/18/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $20,000 11% reverse exchangeables on Occidental
By Marisa Wong
Madison, Wis., Oct. 18 - Bank of Montreal priced $20,000 of 11% annualized reverse exchangeable notes due Jan. 19, 2012 linked to Occidental Petroleum Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Occidental stock closes below the trigger price - 75% 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 Occidental 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: | Occidental Petroleum Corp. (Symbol: OXY)
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Amount: | $20,000
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Maturity: | Jan. 19, 2012
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Coupon: | 11%, payable monthly
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Price: | Par
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Payout at maturity: | If Occidental stock closes below trigger price during life of notes and final share price is less than initial share price, a number of Occidental shares equal to $1,000 divided by initial share price or equivalent amount in cash; otherwise, par
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Initial share price: | $85.42
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Trigger price: | $64.07, 75% of initial share price
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Pricing date: | Oct. 14
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Settlement date: | Oct. 19
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.75%
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Cusip: | 06366QZB6
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