By Sarah Lizee
Olympia, Wash., May 1 – Bank of Montreal priced $435,000 of autocallable barrier notes with contingent coupon due July 31, 2020 linked to the VanEck Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a coupon equal to 6% per year if the fund’s share price is at least 75% of the initial share price on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if the ETF’s shares close above 100% of the initial share price on any monthly observation date beginning in October.
If the notes are not called, the payout at maturity will be par unless the final share price is less than the initial price and the fund has closed below 75% of the initial share price on any day during the life of the notes, in which case investors will lose 1% for each 1% ETF decline from the initial share price.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupon
|
| Underlying fund: | VanEck Vectors Gold Miners exchange-traded fund
|
| Amount: | $435,000
|
| Maturity: | July 31, 2020
|
| Coupon: | 6% per year, payable each month that fund closes at or above coupon barrier on observation date for month
|
| Price: | Par
|
| Payout at maturity: | Par unless final share price is less than the initial price and fund has closed below trigger price on any day during the life of the notes, in which case 1% loss for each 1% decline from the initial share price
|
| Call: | At par plus contingent coupon if fund closes above 100% of initial price on any observation date beginning in October
|
| Initial price: | $20.87
|
| Coupon barrier: | $15.65, 75% of initial price
|
| Trigger price: | $15.65, 75% of initial price
|
| Pricing date: | April 25
|
| Settlement date: | April 30
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.25%
|
| Cusip: | 06367WJT1
|
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