Bank of Montreal plans contingent coupon barrier notes tied to S&P 500

By Angela McDaniels

Tacoma, Wash., April 11 - Bank of Montreal plans to price contingent coupon barrier notes due April 29, 2016 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index closes at or above the trigger level on a semiannual observation date, the notes will pay a 3% coupon for that semiannual period, which is equivalent to 6% per year. Otherwise, no coupon will be paid for that period. The trigger level will be 80% of the initial index level.

If the final index level is greater than or equal to the trigger level, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the index's decline from the initial level.

The notes (Cusip: 06366Q5T0) are expected to price April 25 and settle April 30.

BMO Capital Markets Corp. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.