By Wendy Van Sickle
Columbus, Ohio, Oct. 6 – Bank of Montreal priced $3.76 million of autocallable reverse convertible notes with contingent coupons due Nov. 8, 2021 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly at an annualized rate of 10% if the stock closes above its coupon barrier, 70% of its initial level, on the observation date for the month.
The notes will be called at par if the shares close at or above the initial share price on any monthly trigger observation date after six months.
If the notes are not called, the payout at maturity will be par unless the shares finish below their trigger level, 70% of their initial price, in which case investors will receive a number of shares equal to $1,000 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
BMO Capital Markets is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable reverse convertible notes with contingent coupons
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| Underlying stock: | Apple Inc.
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| Amount: | $3,763,000
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| Maturity: | Nov. 8, 2021
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| Coupon: | 10%, payable monthly if stock closes above coupon barrier on observation day for that month
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| Payout at maturity: | Par unless stock finishes below trigger price, in which case a number of shares equal to $1,000 divided by the initial share price or cash value
|
| Call: | At par if shares close at or above initial share price on any monthly trigger observation date after six months
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| Initial level: | $113.02
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| Coupon barrier/trigger price: | $79.11; 70% of initial share price
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| Pricing date: | Oct. 2
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| Settlement date: | Oct. 7
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| Agent: | BMO Capital Markets
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| Fees: | 2.15%
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| Cusip: | 06367W5M1
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