Published on 11/22/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $2.3 million 11.53% reverse exchangeables linked to five stocks
By Susanna Moon
Chicago, Nov. 22 - Bank of Montreal priced $2.3 million of 11.53% annualized reverse exchangeable notes due May 23, 2012 linked to a basket of equally weighted stocks, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The underlying stocks are Apple Inc., Comcast Corp., Oracle Corp., Pfizer Inc. and Walgreen Co.
The notes will be issued in denominations of $5,000, which amounts to $1,000 each for the five underlying stocks.
A conversion event will occur if an underlying stock closes below its trigger price - 70% of the initial share price - during the life of the notes and finishes below the initial price.
The payout at maturity will be par for each stock unless it experiences a conversion event, in which case the payout for that stock will be a number of shares equal to $1,000 divided by that stock's initial share price or, at the issuer's option, the cash equivalent.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Reverse exchangeable notes
|
| Underlying stocks: | Apple Inc., Comcast Corp., Oracle Corp., Pfizer Inc. and Walgreen Co., equally weighted
|
| Amount: | $2.3 million
|
| Maturity: | May 23, 2012
|
| Coupon: | 11.53%, payable monthly
|
| Price: | Par of $5,000, or $1,000 per stock
|
| Payout at maturity: | For each stock that ever closes below trigger price and finishes below initial price, a number of shares equal to $1,000 divided by its initial price; otherwise, $1,000
|
| Initial share prices: | $375.18 for Apple, $21.47 for Comcast, $30.63 for Oracle, $19.59 for Pfizer and $32.69 for Walgreen
|
| Trigger price: | 70% of initial share price
|
| Pricing date: | Nov. 18
|
| Settlement date: | Nov. 23
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.5%
|
| Cusip: | 06366QL88
|
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