Published on 11/14/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $1.6 million 29% reverse exchangeables linked to AK Steel
By Susanna Moon
Chicago, Nov. 14 - Bank of Montreal priced $1.6 million of 29% annualized reverse exchangeable notes due Feb. 16, 2012 linked to AK Steel Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless AK Steel stock closes below the trigger price - 58.5% 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 AK Steel stock equal to $1,000 divided by the initial share price or, at the issuer's option, the cash equivalent.
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: | AK Steel Corp. (Symbol: AKS)
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Amount: | $1.6 million
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Maturity: | Feb. 16, 2012
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Coupon: | 29%, payable monthly
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Price: | Par
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Payout at maturity: | If AK Steel stock closes below trigger price during life of notes and final share price is less than initial share price, 116.96 AK Steel shares; otherwise, par
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Initial share price: | $8.55
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Trigger price: | $5.00, 58.5% of initial share price
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Pricing date: | Nov. 10
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Settlement date: | Nov. 16
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Agent: | BMO Capital Markets Corp.
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Fees: | 2%
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Cusip: | 06366QL39
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