Bank of Montreal brings $41.3 million of oil markets notes; Barclays sells oil and gas notes

By Sheri Kasprzak

New York, March 9 – The Bank of Montreal led structured products offerings to kick off the week, announcing $41.3 million of zero-coupon oil markets equity-linked notes.

The notes are linked to a basket of 17 equally weighted stocks that were chosen by Raymond James & Associates Inc., according to a Securities and Exchange Commission filing.

The basket includes Basic Energy Services Inc., Bonanza Creek Energy Inc., Chevron Corp., Concho Resources Inc., Energy Transfer Equity LP, Chart Industries Inc., LinnCo LLC, Nabors Industries Ltd., Oasis Petroleum Inc., Occidental Petroleum Corp., Plains GP Holdings LP, Phillips 66, Patterson-UTI Energy Inc., RSP Permian Inc., Targa Resources Corp., Valero Energy Corp. and Whiting Petroleum Corp.

The notes pay par of $1,000 plus the basket return minus a redemption adjustment amount of $3.50 per note.

The notes priced Wednesday at $1,027.50 per $1,000 principal of the notes.

Barclays sells oil, gas notes

Also in the oil and energy sector, Barclays Bank plc offered up $1.35 million of zero-coupon autocallable Super Track notes linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund.

The notes are due March 9, 2017.

If the fund closes at or above the call price, 115% of the initial price, on March 10, 2016, the notes will be called at the redemption price of $1,150 per $1,000 principal amount.

If the notes are not called and the final share price is greater than the initial price, the payout at maturity will be par plus 1.5 times the fund return.

Investors receive par if the price falls by up to 20% and are fully exposed to losses if the fund falls by more than 20%.

The fund saw a 3.95% decline over the past three years and a 26.12% decline in the past year. The fund has seen a 6.27% positive return this year to date and a 10.12% increase in the past month.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.