Bank of Montreal plans autocallable barrier notes linked to Gold fund

By Devika Patel

Knoxville, Tenn., Sept. 15 – Bank of Montreal plans to price autocallable barrier notes with contingent coupon due Dec. 21, 2018 linked to the VanEck Vectors Gold Miners exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

Every month, the notes will pay a coupon equal to 11.7% per year, if the fund's share price is at least 70% of the initial share price on the observation date for that month.

The notes will be automatically redeemed at par plus the contingent coupon if the ETF's shares close above the initial share price on any observation date beginning in March 2018.

If the notes are not called, the payout at maturity will be par unless the final share price is less than the initial price and the fund has closed below 70% of the initial share price during the life of the notes, in which case investors will lose 1% for each 1% decline from the initial share price.

BMO Capital Markets Corp. is the agent.

The notes (Cusip: 06367TH29) will price Sept. 18 and settle Sept. 21.

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