Bank of Montreal eyes autocallable barrier notes linked to Gold funds

By Devika Patel

Knoxville, Tenn., Oct. 1 – Bank of Montreal plans to price autocallable barrier notes with contingent coupon due Jan. 29, 2021 linked to the lesser performing of the VanEck Vectors Gold Miners exchange-traded fund and the VanEck Vectors Junior Gold Miners exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 10.3% if each fund closes at or above its coupon trigger, 60% of the initial level, on a monthly observation date.

The notes will be called at par plus the contingent coupon if each fund closes at or above its initial level on any monthly observation date beginning on April 23, 2020.

The payout at maturity will be par unless either fund finishes below its initial level and either fund closes below its 60% trigger level during the life of the notes, in which case investors will lose 1% for each 1% decline of the lesser-performing fund from its initial level.

BMO Capital Markets Corp. is the agent.

The notes (Cusip: 06367WQR7) will price Oct. 28 and settle Oct. 31.

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