By Susanna Moon
Chicago, Jan. 30 – Bank of Montreal priced $1 million of autocallable barrier notes with contingent coupon due Feb. 25, 2019 linked to the SPDR S&P Regional Banking exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 10.2% if the fund closes at or above its 85% coupon barrier on the observation date for that month.
The notes will be called at par if the fund closes at or above its 110% call level on any monthly observation date beginning in May 2018.
The payout at maturity will be par unless the fund finishes below its initial level and ever closes below its 85% trigger level during the life of the notes, in which case investors will be fully exposed to any losses.
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 fund: | SPDR S&P Regional Banking ETF
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| Amount: | $1 million
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| Maturity: | Feb. 25, 2019
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| Coupon: | 10.2%, payable monthly if fund closes at or above 85% coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless fund finishes below initial level and ever dips below trigger, in which case 1% loss per 1% drop
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| Call: | At par plus the coupon if fund closes above 110% call level on any monthly call date
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| Initial price: | $63.20
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| Trigger price: | $53.72, 85% of initial price
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| Pricing date: | Jan. 22
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| Settlement date: | Jan. 25
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 2%
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| Cusip: | 06367TY53
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