By Wendy Van Sickle
Columbus, Ohio, Aug. 28 – Bank of Montreal priced $967,000 of autocallable barrier notes with a contingent coupon due Nov. 29, 2019 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 7.5% per year if the fund’s share price is at least 70% of the initial share price on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if the ETF’s shares close above the 110% of initial share price on any observation date beginning in February.
If the notes are not called, the payout at maturity will be par unless the final share price is less than the initial price and the fund has closed below 70% of the initial share price during the life of the notes, in which case investors will lose 1% for each 1% decline from the initial share price.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupon
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| Underlying fund: | SPDR S&P Oil & Gas Exploration & Production exchange-traded fund
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| Amount: | $967,000
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| Maturity: | Nov. 29, 2019
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| Coupon: | Monthly at annualized rate of 7.5% if fund closes at or above 70% of initial price on observation date for month
|
| Price: | Par
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| Payout at maturity: | Par unless final share price is less than the initial price and fund has closed below 75% of the initial share price during the life of the notes, in which case investors will lose 1% for each 1% decline from the initial share price
|
| Call: | At par plus contingent coupon if fund closes at or above 110% of initial price on any observation date beginning February
|
| Initial price: | $42.05
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| Coupon barrier/trigger price: | $29.44, 70% of initial price
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| Pricing date: | Aug. 24
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| Settlement date: | Aug. 29
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.75%
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| Cusip: | 06367WAX1
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