By William Gullotti
Buffalo, N.Y., March 26 – Bank of Montreal priced $2.5 million of callable barrier notes with contingent coupons due Nov. 26, 2024 linked to the stock performance of Xcel Energy Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon if the stock closes at or above the coupon barrier level, 70% of the initial price, on the valuation date for that period. The first two coupons, if payable, will pay at a rate of $37.50 per $1,000 principal amount. The final, if payable, will be $25 per note.
The notes will be callable at par plus any coupon otherwise due on any quarterly observation date.
If the notes are not called, the payout at maturity will be par plus the final coupon unless the stock finishes below its 70% trigger level, in which case investors will lose 1% for each 1% of stock decline from its initial level.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Callable barrier notes with contingent coupons
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Underlying stock: | Xcel Energy Inc.
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Amount: | $2.5 million
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Maturity: | Nov. 26, 2024
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Coupon: | Payable quarterly if closing price of shares is greater than or equal to coupon barrier level on valuation date for that period; first two coupons will pay $37.50 per note with the final coupon worth $25
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Price: | Par
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Payout at maturity: | Par plus final coupon unless the stock finishes below its trigger level, in which case investors will lose 1% for each 1% of stock decline from its initial level
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Call option: | At par plus any coupon due on any quarterly observation date
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Initial level: | $52.30
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Coupon barrier level: | $36.61; 70% of initial level
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Trigger level: | $36.61; 70% of initial level
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Pricing date: | March 21
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Settlement date: | March 26
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.6%
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Cusip: | 06376A3C2
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