By Kiku Steinfeld
Chicago, Oct. 16 – Bank of Montreal priced $2.15 million of autocallable barrier notes with a contingent coupon due Dec. 31, 2020 linked to the SPDR S&P oil & gas exploration and production exchange-traded fund 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 12.5% per year if each fund closes above its coupon barrier level, 60% of its initial price, on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if each fund closes above its initial price on any monthly observation date beginning after six months.
If the notes are not called, the payout at maturity will be par unless the final price of either fund is less than its initial price and either fund has closed below 60% of its initial price during the life of the notes, in which case investors will lose 1% for each 1% decline of the least performing fund from its initial price.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable barrier notes with contingent coupon
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| Underlying funds: | SPDR S&P oil & gas exploration and production ETF and Energy Select Sector SPDR fund
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| Amount: | $2,146,000
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| Maturity: | Dec. 31, 2020
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| Coupon: | 12.5% per year, payable monthly if each fund closes above coupon barrier level on any related observation date beginning after six months
|
| Price: | Par
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| Payout at maturity: | Par unless final price of either fund is less than initial price and either fund has closed below 60% of initial price during life of notes, in which case investors will lose 1% for each 1% decline of the least performing fund from its initial price
|
| Call: | At par plus contingent coupon if each fund closes above initial price on any observation date after six months
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| Initial prices: | $23.08 for oil ETF, $60.43 for energy ETF
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| Coupon barrier/trigger prices: | $13.85 for oil ETF, $36.26 for energy ETF, 60% of initial prices
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 30
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 2.25%
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| Cusip: | 06367WPT4
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