Published on 3/14/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $824,000 19.75% reverse exchangeables tied to AMR shares
By Susanna Moon
Chicago, March 14 - Bank of Montreal priced $824,000 of 19.75% annualized reverse exchangeable notes due June 15, 2011 linked to AMR 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 AMR stock closes below the trigger price - 65% 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 AMR 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: | AMR Corp. (Symbol: AMR)
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Amount: | $824,000
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Maturity: | June 15, 2011
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Coupon: | 19.75%, payable monthly
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Price: | Par
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Payout at maturity: | If AMR stock closes below trigger price during life of notes and finishes below initial share price, 153.1394 AMR shares; otherwise, par
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Initial share price: | $6.53
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Trigger price: | $4.24, or 65% of initial price
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Pricing date: | March 10
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Settlement date: | March 15
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Agent: | BMO Capital Markets Corp.
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Fees: | 2.25%
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Cusip: | 06366QEJ2
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