By Cady Vishniac
Detroit, Jan. 7 – Bank of Montreal priced $3.3 million of autocallable reverse convertible notes with contingent coupons due Jan. 31, 2022 linked to the common stock of Boeing Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly at an annualized rate of 11.6% if the stock closes above its coupon barrier, 65% of its initial price, on the observation date for the period.
The notes will be called at par if the shares close above the initial share price on any monthly observation date after six months.
If the notes are not called and the shares finish at or above their trigger price, 65% of the initial price, the payout at maturity will be par plus any coupon due. If the notes are not called and the shares finish below their trigger price, 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 Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable reverse convertible notes with contingent coupons
|
| Underlying stock: | Boeing Co.
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| Amount: | $3,297,000
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| Maturity: | Jan. 31, 2022
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| Coupon: | 11.6% annual rate, payable monthly if stock closes above coupon barrier on observation day for that period
|
| Price: | Par
|
| Payout at maturity: | Par plus any coupon due 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 above initial share price on any monthly observation date after six months
|
| Initial price: | $216.09
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| Coupon barrier/trigger price: | $140.46, 65% of initial share price
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| Pricing date: | Dec. 28
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| Settlement date: | Dec. 31
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.15%
|
| Cusip: | 06368EB35
|
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