Published on 1/11/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $7.54 million 10.15% reverse exchangeables linked to stock basket
By Angela McDaniels
Tacoma, Wash., Jan. 11 - Bank of Montreal priced $7.54 million of reverse exchangeable notes due April 14, 2011 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The three-month notes carry an annualized coupon of 10.15%. Interest is payable monthly.
The basket includes equal weights of Akamai Technologies, Inc., First Solar, Inc., Freeport-McMoRan Copper & Gold Inc., Janus Capital Group Inc., Monster Worldwide, Inc., Netflix Inc., NII Holdings Inc. and Wynn Resorts, Ltd.
Each note has a face amount of $8,000.
A conversion event will occur for a basket stock if it closes below its trigger price during the life of the notes and its final price is less than its initial price. The trigger price is 75% of the initial share price for Janus, NII and Wynn Resorts and 70% of the initial share price for the remaining stocks.
For each stock that has experienced a conversion event, investors will receive at maturity a number of shares of that stock equal to $1,000 divided by that stock's initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
For each stock that has not experienced a conversion event, investors will receive $1,000 at maturity.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Reverse exchangeable notes
|
| Underlying stocks: | Akamai Technologies, Inc., First Solar, Inc., Freeport-McMoRan Copper & Gold Inc., Janus Capital Group Inc., Monster Worldwide, Inc., Netflix Inc., NII Holdings Inc. and Wynn Resorts, Ltd., equally weighted
|
| Amount: | $7,536,000
|
| Maturity: | April 14, 2011
|
| Coupon: | 10.15%, payable monthly
|
| Price: | Par of $8,000
|
| Payout at maturity: | For each stock that falls below its trigger price during the life of the notes and finishes below its initial price, a number of shares of that stock equal to $1,000 divided by its initial price; for each remaining stock, $1,000
|
| Initial share prices: | $48.69 for Akamai; $133.58 for First Solar; $117.47 for Freeport-McMoRan; $13.07 for Janus; $25.07 for Monster; $179.30 for Netflix; $42.89 for NII; $118.73 for Wynn Resorts
|
| Trigger price: | 75% of initial share price for Janus, NII and Wynn Resorts; 70% of initial share price for remaining stocks
|
| Pricing date: | Jan. 7
|
| Settlement date: | Jan. 14
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2%
|
| Cusip: | 06366QCU9
|
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