By Sarah Lizee
Olympia, Wash., May 2 – Bank of Montreal priced $1.16 million of autocallable barrier notes with a contingent coupon due May 29, 2020 linked to the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 8.05% per year if the fund’s share price is at least 85% 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 October.
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 85% 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.
Issuer: | Bank of Montreal
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Issue: | Autocallable barrier notes with contingent coupon
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Underlying fund: | iShares MSCI Emerging Markets
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Amount: | $1,155,000
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Maturity: | May 29, 2020
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Coupon: | Monthly at annualized rate of 8.05% if fund closes at or above coupon barrier on observation date for month
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Price: | Par
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Payout at maturity: | Par unless final share price is less than the initial price and fund has closed below trigger price during the life of the notes, in which case investors will lose 1% for each 1% decline from the initial share price
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Call: | At par plus contingent coupon if fund closes at or above initial price on any observation date beginning in October
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Initial price: | $43.88
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Coupon barrier/trigger price: | $37.30, 85% of initial price
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Pricing date: | April 26
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Settlement date: | April 30
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.5%
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Cusip: | 06367WKM4
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