Bank of Montreal to sell autocallable barrier notes on oil & gas fund

By Devika Patel

Knoxville, Tenn., Oct. 4 – Bank of Montreal plans to price autocallable barrier notes with a contingent coupon due Oct. 12, 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.

Every quarter, the notes will pay a coupon equal to 10.25% per year if the fund’s share price is at least 70% of the initial share price on the observation date for that quarter.

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 April 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: 06367TK58) will price Oct. 6 and settle Oct. 12.

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