Published on 4/30/2018 in the Prospect News Structured Products Daily.
New Issue: BMO prices $145,000 autocallable cash-settled notes on two ETFs
By Wendy Van Sickle
Columbus, Ohio, April 30 – Bank of Montreal priced $145,000 of autocallable cash-settled notes with conditional interest payments due April 29, 2022 linked to the lesser performing of the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund and the VanEck Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly at a rate of 11% per year if each ETF closes above its coupon barrier, 65% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each ETF closes above its initial level on any quarterly call date beginning on Jan. 31, 2019.
The payout at maturity will be par unless either ETF finishes below the 65% trigger level, in which case investors will lose 1% for each 1% decline of the lesser-performing ETF from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable cash-settled notes with conditional interest payments
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| Underlying ETFs: SPDR S&P Oil & Gas Exploration & Production ETF, VanEck Vectors Gold Miners ETF
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| Amount: | $145,000
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| Maturity: | April 29, 2022
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| Coupon: | 11%, payable quarterly if each ETF closes above coupon barrier on related observation date
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| Price: | Par of $1,000
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| Payout at maturity: | Par unless either fund finishes below its trigger level, in which case investors will be fully exposed to any losses of the lesser-performing ETF
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| Call: | At par plus the coupon if each fund finishes above its initial level on any quarterly call date beginning Jan. 31, 2019
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| Initial levels: | $39.12 for oil and gas, $22.50 for Gold Miners
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| Barriers/triggers: | $25.43 for oil and gas, $14.63 for Gold Miners; 65% of initial levels
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| Pricing date: | April 25
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| Settlement date: | April 30
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3%
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| Cusip: | 06367T4S6
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