BMO plans contingent coupon autocallables linked to Nasdaq, Russell

By Angela McDaniels

Tacoma, Wash., Jan. 3 – Bank of Montreal plans to price autocallable cash-settled notes with contingent interest payments due Feb. 28, 2020 linked to the lesser performing of the Nasdaq-100 index and the Russell 2000 index, according to an FWP filing with the Securities and Exchange Commission.

Each month, the notes will pay a conditional coupon at the rate of 13.2% per year if each index closes at or above its trigger level, 70% of its initial level, on the observation date for that month.

Beginning July 24, 2019, the notes will be called at par if each index closes at or above its initial level on any monthly call date.

If the notes are not called, the payout at maturity will be par unless either index closes below its trigger level during the life of the notes and either index finishes below its initial level, in which case investors will be exposed to the decline of the lesser-performing index from its initial level.

BMO Capital Markets Corp. is the agent.

The notes will price Jan. 28.

The Cusip number is 06367WGD9.

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