BMO eyes autocallable barrier notes with contingent coupon on oil ETF

By Sarah Lizee

Olympia, Wash., April 9 – Bank of Montreal plans autocallable barrier notes with contingent coupon due July 31, 2020 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a coupon equal to 12.3% 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 100% of the initial share price on any monthly observation date beginning in October.

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 on any day during the life of the notes, in which case investors will lose 1% for each 1% ETF decline from the initial share price.

BMO Capital Markets Corp. is the agent.

The notes will price on April 29.

The Cusip number is 06367WJU8.

© 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.