Published on 6/12/2012 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $3.44 million 10.3% reverse exchangeables linked to five stocks
By Angela McDaniels
Tacoma, Wash., June 12 - Bank of Montreal priced $3.44 million of 10.3% reverse exchangeable notes due June 12, 2013 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes equal weights of Apple Inc., Boeing Co., eBay Inc., Halliburton Co. and JPMorgan Chase & Co.
Interest is payable monthly.
The notes have a face amount of $5,000 each. The payout at maturity will be the physical delivery amount for each stock for which a conversion event occurs plus $1,000 in cash for each stock for which a conversion event does not occur.
A conversion event occurs for a stock if it closes below its trigger price, 60% of its initial share price, during the life of the notes and its final share price is less than its initial share price. The physical delivery amount is a number of shares of that stock equal to $1,000 divided by its 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
|
| Issue: | Reverse exchangeable notes
|
| Underlying stocks: | Apple Inc. (Symbol: AAPL), Boeing Co. (Symbol: BA), eBay Inc. (Symbol: EBAY), Halliburton Co. (Symbol: HAL) and JPMorgan Chase & Co. (Symbol: JPM), equally weighted
|
| Amount: | $3.44 million
|
| Maturity: | June 12, 2013
|
| Coupon: | 10.3%, payable monthly
|
| Price: | Par of $5,000
|
| Payout at maturity: | Physical delivery amount for each stock for which conversion event occurs plus $1,000 in cash for each stock for which conversion event does not occur; physical delivery amount is number of shares equal to $1,000 divided by initial share price or, at issuer's option, cash amount equal to value of those shares
|
| Conversion event: | Stock closes below trigger price during life of notes and finishes below initial share price
|
| Initial share prices: | $580.32 for Apple, $69.94 for Boeing, $41.05 for eBay, $27.96 for Halliburton and $33.68 for JPMorgan
|
| Trigger prices: | $348.19 for Apple, $41.96 for Boeing, $24.63 for eBay, $16.78 for Halliburton and $20.21 for JPMorgan; 60% of initial prices
|
| Pricing date: | June 8
|
| Settlement date: | June 13
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.5%
|
| Cusip: | 06366RFK6
|
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