Bank of Montreal to price 9.9% autocallables linked to oil & gas ETF

By Angela McDaniels

Tacoma, Wash., June 5 – Bank of Montreal plans to price 9.9% autocallable cash-settled notes with fixed interest payments due June 29, 2018 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly.

Beginning Jan. 16, 2018, the notes will be automatically called at par if the ETF’s shares close above the call level, 110% of the initial share price, on any monthly call date.

If the notes are not called, the payout at maturity will be par unless the final share price is less than the initial share price and the ETF closes below the trigger price, 75% of the initial share price, on any day during the life of the notes, in which case investors will lose 1% for every 1% that the final share price is less than the initial share price.

BMO Capital Markets Corp. is the agent.

The notes will price June 27.

The Cusip number is 06367TXT2.

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