Bank of Montreal plans contingent risk absolute return notes on S&P

By Wendy Van Sickle

Columbus, Ohio, Nov. 16 – Bank of Montreal plans to price contingent risk absolute return notes due Nov. 30, 2017 linked to the S&P 500 index, according to a 424B2 filed with the Securities and Exchange Commission.

The payout at maturity will be par plus 100% of any index gain.

If the index finishes flat or falls but ends at above the barrier level of 77% to 81% of the initial value, the payout will be par plus the absolute value of the return, up to the maximum downside redemption amount of $1,190 per $1,230 principal amount. The exact barrier level will be set pricing.

Otherwise, investors will be fully exposed to any losses.

BMO Capital Markets Corp. is the agent.

The notes will price on Nov. 24 and settle on Nov. 30.

The Cusip number is 06366R4S1.

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