Bank of Montreal plans 15% autocallables linked to oil and gas ETF

By Angela McDaniels

Tacoma, Wash., Feb. 3 – Bank of Montreal plans to price autocallable cash-settled notes due Feb. 29, 2016 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The coupon amount is $12.50 per $1,000 principal amount of notes per month, or 15% per year.

The notes will be automatically redeemed at par if the ETF’s closing share price is greater than 110% of the initial share price on any monthly call date.

If the notes are not redeemed, the payout at maturity will be par unless the final share price is less than the trigger price, 85% of the initial share price, in which case investors will be fully exposed to the ETF’s decline from its initial share price.

BMO Capital Markets Corp. is the agent.

The notes are expected to price Feb. 25 and settle Feb. 27.

The Cusip number is 06366RZV0.

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