By Angela McDaniels
Tacoma, Wash., April 29 – Bank of Montreal priced $735,000 of 0% contingent risk absolute return notes due April 28, 2017 linked to the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the ETF return is positive, the payout at maturity will be par plus the ETF return.
If the ETF return is less than or equal to zero and a barrier event has not occurred, the payout will be par plus the absolute value of the ETF return, subject to a maximum return of 25%. A barrier event will occur if the ETF closes at or below the barrier share price, 75% of the initial share price, on any during the life of the notes.
If the ETF return is less than or equal to zero and a barrier event has occurred, investors will be fully exposed to the ETF's decline.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Contingent risk absolute return notes
|
| Underlying ETF: | iShares MSCI EAFE
|
| Amount: | $735,000
|
| Maturity: | April 28, 2017
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If ETF return is positive, par plus ETF return; if ETF return is less than or equal to zero and barrier event has not occurred, par plus absolute value of ETF return, up to 25% maximum return; if ETF return is less than or equal to zero and barrier event has occurred, full exposure to ETF's decline
|
| Barrier event: | ETF closes at or below barrier share price on any day during life of notes
|
| Initial share price: | $67.75
|
| Barrier share price: | $50.81, 75% of initial share price
|
| Pricing date: | April 27
|
| Settlement date: | April 30
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | None
|
| Cusip: | 06366RJ30
|
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