Published on 12/29/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $250,000 8% reverse exchangeables tied to Baidu
By Toni Weeks
San Diego, Dec. 29 - Bank of Montreal priced $250,000 of 8% annualized reverse exchangeable notes due March 30, 2012 linked to the American Depositary Shares of Baidu, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Baidu ADSs close below the trigger price - 70% 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 Baidu ADSs equal to $1,000 divided by the initial share price or, at the issuer's option, the cash 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: | Baidu, Inc. (Symbol: BIDU)
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Amount: | $250,000
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Maturity date: | March 30, 2012
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Coupon: | 8%, payable monthly
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Price: | Par
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Payout at maturity: | Par, unless Baidu ADSs fall below $81.55, 70% of initial ADS price, during life of notes and finish below initial share price, in which case number of Baidu shares equal to $1,000 divided by initial ADS price or value of those shares in cash
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Initial price: | $116.50
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Trigger price: | $81.55, 70% of initial
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Pricing date: | Dec. 28
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Settlement date: | Dec. 30
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Agent: | BMO Capital Markets Corp.
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Fees: | 2%
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Cusip: | 06366QW52
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