BMO plans autocallable reverse convertibles with contingent coupons on Netflix

By Sarah Lizee

Olympia, Wash., March 13 – Bank of Montreal plans to price autocallable reverse convertible notes with contingent coupons due June 25, 2021 linked to the common stock of Netflix, Inc., according to an FWP filing with the Securities and Exchange Commission.

Interest is payable monthly at an annual rate of 14.18% if the stock closes at or above its 60% coupon barrier level on a monthly observation date.

The notes will be called at par if the shares close at or above the initial share price on any quarterly trigger observation date after six months.

The payout at maturity will be par unless the shares finish below the initial price and ever close below the knock-in level, 60% of the initial level, during the life of the notes, in which case investors will be exposed to the decline of the stock.

BMO Capital Markets is the agent.

The notes will price on March 20.

The Cusip number is 06367WYK3.

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