Published on 8/30/2018 in the Prospect News Structured Products Daily.
New Issue: BMO sells $102,000 9.9% contingent coupon autocalls tied to tech basket
By Susanna Moon
Chicago, Aug. 30 – Bank of Montreal priced $102,000 of autocallable barrier notes with contingent coupons due Nov. 29, 2019 linked to a basket of eight equally weighted technology companies, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are Alphabet Inc., Amazon.com, Inc., Apple Inc., Facebook, Inc., Netflix Inc., Nvidia Corp., Tesla Inc. and Twitter, Inc.
The notes will pay a contingent monthly coupon at an annual of 9.9% if the basket closes at or above its 70% coupon barrier on the observation date for that month.
The notes will be called at par plus the contingent coupon if the basket closes at or above its initial level on any call valuation date after six months.
The payout at maturity will be par unless the basket ever closes below 70% trigger level during the life of the notes, in which case investors will be exposed to any losses.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupon
|
| Underlying basket: | Alphabet Inc. (Symbol: GOOGL), Amazon.com, Inc. (Symbol: AMZN), Apple Inc. (Symbol: AAPL), Facebook, Inc. (Symbol: FB), Netflix Inc. (Symbol: NFLX), Nvidia Corp. (Symbol: NVDA), Tesla Inc. (Symbol: TSLA) and Twitter, Inc. (Symbol: TWTR), equally weighted
|
| Amount: | $102,000
|
| Maturity: | Nov. 29, 2019
|
| Coupon: | 9.9% annualized, payable monthly if basket closes at or above its 70% coupon barrier on observation date for that month
|
| Price: | Par
|
| Call: | At par plus contingent coupon if basket closes at or above initial level on any observation date beginning in February 2019
|
| Payout at maturity: | Par unless basket ever closes below 70% trigger level, in which case 1% loss per 1% decline
|
| Initial levels: | $1,236.75 for Alphabet, $1,905.39 for Amazon, $216.16 for Apple, $174.645 for Facebook, $358.82 for Netflix, $272.22 for Nvidia, $322.82 for Tesla and $34.28 for Twitter
|
| Trigger levels: | 70% of initial levels
|
| Pricing date: | Aug. 24
|
| Settlement date: | Aug. 29
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.75%
|
| Cusip: | 06367WAS2
|
|
|
|
|
© 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.
