Published on 1/28/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $10,000 10.9% reverse exchangeables on MEMC
By Marisa Wong
Madison, Wis., Jan. 28 - Bank of Montreal priced $10,000 of reverse exchangeable notes due July 29, 2011 linked to the common stock of MEMC Electronic Materials, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes carry an annualized coupon of 10.9%. Interest is payable monthly.
The payout at maturity will be par unless MEMC stock closes below the trigger price - 75% of the initial share price - during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of shares of MEMC stock equal to $1,000 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Reverse exchangeable notes
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Underlying stock: | MEMC Electronic Materials, Inc. (Symbol: WFR)
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Amount: | $10,000
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Maturity: | July 29, 2011
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Coupon: | 10.9%, payable monthly
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Price: | Par
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Payout at maturity: | If MEMC stock closes below trigger price during life of notes and final share price is less than initial share price, number of MEMC shares equal to $1,000 divided by initial share price or value of those shares in cash; otherwise, par
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Initial share price: | $11.53
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Trigger price: | $8.65, 75% of initial price
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Pricing date: | Jan. 26
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Settlement date: | Jan. 31
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Agent: | BMO Capital Markets Corp.
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Fees: | 2.25%
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Cusip: | 06366QCM7
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