BMO to price autocallable barrier notes with contingent coupons on ETFs

By Sarah Lizee

Olympia, Wash., July 21 – Bank of Montreal plans to price autocallable barrier notes with a contingent coupon due Oct. 29, 2021 linked to the VanEck Vectors Gold Miners ETF and VanEck Vectors Junior Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.

Every month, the notes will pay a coupon equal to 12.5% per year if each fund’s share price is at least 62% 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 each ETF’s shares close above its initial share price on any monthly observation date after six months.

If the notes are not called, the payout at maturity will be par unless the final share price of either fund is less than 62% of the initial share price, in which case investors will lose 1% for each 1% decline from the initial share price of the least performing fund.

BMO Capital Markets Corp. is the agent.

The notes will price on July 24.

The Cusip number is 06367WZ30.

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