By William Gullotti
Buffalo, N.Y., July 16 – Bank of Montreal priced $2.82 million of autocallable barrier notes with contingent coupons due May 31, 2024 linked to the VanEck Vectors Gold Miners ETF and the VanEck Vectors Junior Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon equal to 9% per year if each ETF’s closing level is at least 65% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if each ETF closes above its initial level on any quarterly observation date beginning on Nov. 24.
If the notes have not been called, the payout at maturity will be par plus the final coupon unless either ETF finishes below its 65% trigger value, in which case investors will lose 1% for every 1% that the lesser-performing ETF finishes below its initial level.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Autocallable barrier notes with contingent coupons
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Underlying ETFes: | VanEck Vectors Gold Miners ETF, VanEck Vectors Junior Gold Miners ETF
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Amount: | $2,822,000
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Maturity: | May 31, 2024
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Coupon: | 9% per year, payable quarterly if each ETF’s closing level is at or above its coupon barrier level on the observation date for that quarter
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Price: | Par
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Payout at maturity: | The payout at maturity will be par plus the final coupon unless either ETF finishes below its 65% trigger value, in which case investors will lose 1% for every 1% that the lesser-performing ETF finishes below its initial level
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Call: | At par plus contingent coupon if ETFs close above initial levels on any quarterly observation date beginning on Nov. 24
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Initial levels: | $39.21 for Gold Miners, $54.09 for Junior Gold Miners
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Coupon barrier levels: | $25.49 for Gold Miners, $35.16 for Junior Gold Miners; 65% of initial levels
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Trigger levels: | $25.49 for Gold Miners, $35.16 for Junior Gold Miners; 65% of initial levels
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Pricing date: | May 27
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Settlement date: | June 2
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.6%
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Cusip: | 06368ELD2
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