Published on 4/12/2012 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $500,000 reverse exchangeable notes linked to Bank of America
New York, April 12 - Bank of Montreal priced $500,000 of 10.02% annualized reverse exchangeable notes due Aug. 13, 2012 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Bank of America stock closes below the trigger level, 70% of the initial share price, during the life of the notes and finishes below the initial share price, in which case the payout will be a number of shares of Bank of America stock equal to $1,000 divided by the initial share price or, at the issuer's option, the cash equivalent.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Reverse exchangeable notes
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Underlying stock: | Bank of America Corp. (Symbol: BAC)
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Amount: | $500,000
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Maturity: | Aug. 13, 2012
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Coupon: | 10.02% annualized, payable monthly
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Price: | Par
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Payout at maturity: | If Bank of America stock ever closes below trigger price and finishes below initial share price, a number of Bank of America shares equal to $1,000 divided by the initial share price; otherwise, par
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Initial share price: | $8.62
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Trigger price: | $6.03, 70% of initial price
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Pricing date: | April 10
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Settlement date: | April 13
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Underwriters: | BMO Capital Markets Corp.
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Fees: | 1%
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Cusip: | 06366Q7E1
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