BMO eyes autocallable barrier notes with contingent coupons on ETFs

By Sarah Lizee

Olympia, Wash., March 31 – Bank of Montreal plans to price autocallable barrier notes with contingent coupons due April 15, 2025 linked to the lesser performing of the VanEck Vectors Gold Miners exchange-traded fund and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 22% per year if each ETF closes at or above its trigger price, 50% of its initial share price, on the observation date for that quarter.

Beginning April 12, 2021, the notes will be automatically called at par plus the contingent coupon if each ETF closes above its initial share price on any quarterly observation date.

The payout at maturity will be par unless either ETF finishes below its trigger price, in which case investors will lose 1% for every 1% that the lesser-performing ETF declines from its initial share price.

BMO Capital Markets Corp. is the agent.

The notes will price on April 9.

The Cusip number is 06367WYU1.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.