BMO plans contingent 10.2% cash-settled autocalls on oil, gold funds

By Susanna Moon

Chicago, May 11 – Bank of Montreal plans to price autocallable cash-settled notes with conditional interest payments due May 31, 2022 linked to the lesser performing of the SPDR S&P Oil & Gas Exploration & Production ETF and the VanEck Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly at an annual rate of 10.2% if each underlying component closes at or above its 65% coupon barrier level on the observation date for that quarter.

The notes will be called at par if each component closes at or above its initial level on any review date beginning on Feb. 25, 2019.

The payout at maturity will be par unless either fund finishes below its 65% trigger level, in which case investors be fully exposed to any losses of the worse performing fund.

BMO Capital Markets Corp. is the agent.

The notes will price on May 24 and settle on May 30.

The Cusip is 06367T5K2.

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