Chicago, Nov. 1 – Bank of Montreal priced $713,000 of autocallable barrier notes with contingent coupons due March 31, 2022 linked to the Energy Select Sector SPDR fund and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 9% per year if each fund’s share price is at least 60% 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 monthly observation date after six months.
If the notes are not called, the payout at maturity will be par unless the final share price of either fund is less than 60% of the initial share price, 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.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupons
|
| Underlying funds: | Energy Select Sector SPDR fund and the SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $713,000
|
| Maturity: | March 31, 2022
|
| Coupon: | 9% per year, payable monthly if each fund’s share price is at least 60% of the initial share price on the observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless the final share price of either fund is less than 60% of the initial share price, in which case investors will lose 1% for each 1% decline from the initial share price of the least performing fund
|
| Call: | At par plus contingent coupon if funds close at or above initial prices on any observation date after six months
|
| Initial prices: | $83.32 for Oil & Gas, $50.43 for Energy
|
| Coupon barrier/trigger prices: | $49.99 for Oil & Gas, $30.26 for Energy, 60% of initial prices
|
| Pricing date: | March 26
|
| Settlement date: | March 31
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.15%
|
| Cusip: | 06368EG71
|
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