BMO plans autocallable barrier notes with contingent coupon on gold ETF

By Sarah Lizee

Olympia, Wash., March 6 – Bank of Montreal plans to price autocallable barrier notes with a contingent coupon due June 30, 2020 linked to the VanEck Vectors Gold Miners ETF, according to an FWP filing with the Securities and Exchange Commission.

Every month, the notes will pay a coupon equal to 6.3% per year if the fund’s share price is at least 75% 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 September.

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 75% 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 will price on March 26.

The Cusip number is 06367WHZ9.

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