BMO plans contingent coupon autocallable barrier notes tied to gold ETF

By Angela McDaniels

Tacoma, Wash., Jan. 3 – Bank of Montreal plans to price autocallable barrier notes with contingent coupons due April 30, 2020 linked to the VanEck Vectors Gold Miners exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon at the rate of 8.7% per year if the ETF closes at or above the coupon barrier, 75% of the initial share price, on the observation date for that month.

Beginning in July 2019, the notes will be automatically called at par plus the contingent coupon if the ETF closes above the call level, 110% of the initial share price, on any observation date.

The payout at maturity will be par unless the ETF closes below the 75% trigger price during the life of the notes and the final share price is less than the initial share price, in which case investors will be lose 1% for every 1% that the final share price is below the initial share price.

BMO Capital Markets Corp. is the agent.

The notes will price Jan. 28.

The Cusip number is 06367WGH0.

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