By Wendy Van Sickle
Columbus, Ohio, Feb. 5 – Bank of Montreal priced $2.46 million of autocallable barrier notes with a contingent coupon due April 30, 2021 linked to 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 10.4% per year if the fund closes above its coupon barrier level, 65% of its initial price, on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if the fund closes above its initial price on any monthly observation date starting in January 2021.
If the notes are not called, the payout at maturity will be par unless the final price of the fund is less than its initial price and the fund has closed below 65% of its initial price during the life of the notes, in which case investors will lose 1% for each 1% decline of the fund from its initial 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: | SPDR S&P Oil & Gas Exploration & Production ETF
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| Amount: | $2,462,000
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| Maturity: | April 30, 2021
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| Coupon: | 10.4% per year, payable monthly if each fund closes above coupon barrier level on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless final price of fund is less than initial price and fund has closed below 65% of initial price during life of notes, in which case investors will lose 1% for each 1% decline of fund from its initial price
|
| Call: | At par plus contingent coupon if each fund closes above initial price on any observation date starting in January 2021
|
| Initial price: | $19.97
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| Coupon barrier/trigger price: | $12.98, 65% of initial price
|
| Pricing date: | Jan. 28
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| Settlement date: | Jan. 31
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| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.25%
|
| Cusip: | 06367WTW3
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