Published on 2/21/2012 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $629,000 19% reverse exchangeables linked to Research In Motion
By Angela McDaniels
Tacoma, Wash., Feb. 21 - Bank of Montreal priced $629,000 of reverse exchangeable notes due May 22, 2012 linked to the common stock of Research In Motion Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes carry a coupon of 19% per year. Interest is payable monthly.
The payout at maturity will be par unless Research In Motion 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 Research In Motion 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: | Research In Motion Ltd. (Symbol: RIMM)
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Amount: | $629,000
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Maturity: | May 22, 2012
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Coupon: | 19%, payable monthly
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Price: | Par
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Payout at maturity: | If Research In Motion stock closes below trigger price during life of notes and final share price is less than initial share price, 64.9773 Research In Motion shares or equivalent amount in cash; otherwise, par
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Initial share price: | $15.39
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Trigger price: | $10.00, 65% of initial share price
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Pricing date: | Feb. 16
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Settlement date: | Feb. 22
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Agent: | BMO Capital Markets Corp.
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Fees: | 2%
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Cusip: | 06366Q3L9
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