By Sarah Lizee
Olympia, Wash., Aug. 2 – Bank of Montreal priced $1.98 million of autocallable barrier notes with a contingent coupon due Oct. 30, 2020 linked to the SPDR S&P Oil & Gas Exploration and Production ETF and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 11.3% per year if each fund’s share price is at least 65% 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 each ETF’s shares close above its initial share price on any observation date beginning in January.
If the notes are not called, the payout at maturity will be par unless the final share price of either fund is less than the initial price and either fund has closed below 65% 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 of the least performing fund.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupon
|
| Underlying funds: | SPDR S&P Oil & Gas Exploration and Production ETF and the Energy Select Sector SPDR fund
|
| Amount: | $1,983,000
|
| Maturity: | Oct. 30, 2020
|
| Coupon: | 11.3% per year, payable monthly if each fund’s share price is at least 65% of the initial share price on the observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless the final share price of either fund is less than the initial price and either fund has closed below 65% 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 of the least performing fund
|
| Call: | At par plus contingent coupon if funds close at or above initial prices on any observation date beginning in January
|
| Initial prices: | $24.21 for oil fund, $62.45 for energy fund
|
| Coupon barrier/trigger prices: | $15.74 for oil fund, $40.59 for energy fund, 65% of initial prices
|
| Pricing date: | July 26
|
| Settlement date: | July 31
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.25%
|
| Cusip: | 06367WMR1
|
© 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.
