BMO eyes autocallable barrier notes with contingent coupon on ETFs

By Sarah Lizee

Olympia, Wash., June 7 – Bank of Montreal plans to price autocallable barrier notes with a contingent coupon due Sept. 30, 2020 linked to the VanEck Vectors Gold Miners ETF and the VanEck Vectors Junior Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.

Every month, the notes will pay a coupon equal to 10.45% per year if each fund’s share price is at least 70% 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 each ETF’s shares close above its initial share price on any observation date beginning in December.

If the notes are not called, the payout at maturity will be par unless the final share price of either fund is less than the initial price and either fund has closed below 70% 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 of the least performing fund.

BMO Capital Markets Corp. is the agent.

The notes will price on June 27.

The Cusip number is 06367WLU5.

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