Published on 7/28/2016 in the Prospect News Structured Products Daily.
New Issue: BMO prices $701,000 contingent risk absolute return notes tied to Gold Miners
By Wendy Van Sickle
Columbus, Ohio, July 28 – Bank of Montreal priced $701,000 of 0% contingent risk absolute return notes with digital upside due July 31, 2018 linked to the VanEck Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund finishes above the initial level, the payout at maturity will be par plus the digital return of 23%.
If the fund falls but finishes above the 60% barrier level, the payout will be par plus the absolute value of the return, up to a maximum return of $1,400 per $1,000 of notes.
Otherwise, investors will be fully exposed to any losses.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Contingent risk absolute return notes with digital upside
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Underlying ETF: | VanEck Vectors Gold Miners ETF
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Amount: | $701,000
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Maturity: | July 31, 2018
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If ETF return is positive, par plus digital return of 23%; if fund falls but not by more than 40%, par plus absolute value of return, up to a maximum downside redemption amount of $1,400 per $1,000 principal amount; if fund falls by more than 40%, full exposure to any losses
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Initial level: | $28.50
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Barrier level: | $17.10, 60% of initial level
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Pricing date: | July 26
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Settlement date: | July 29
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.8%
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Cusip; | 06367THC7
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