Published on 1/19/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $925,000 11.5% reverse exchangeables linked to FedEx
By Angela McDaniels
Tacoma, Wash., Jan. 19 - Bank of Montreal priced $925,000 of reverse exchangeable notes due July 20, 2011 linked to the common stock of FedEx Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes carry an annualized coupon of 11.5%. Interest is payable monthly.
The payout at maturity will be par unless FedEx stock closes below the trigger price - 85% of the initial share price - during the life of the notes and the final share price is less than the initial share price, in which case the payout will be a number of shares of FedEx stock equal to $1,000 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Reverse exchangeable notes
|
| Underlying stock: | FedEx Corp. (Symbol: FDX)
|
| Amount: | $925,000
|
| Maturity: | July 20, 2011
|
| Coupon: | 11.5%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | If FedEx stock closes below trigger price during life of notes and final share price is less than initial share price, 10.43515 FedEx shares or value of those shares in cash; otherwise, par
|
| Initial share price: | $95.83
|
| Trigger price: | $81.46, 85% of initial price
|
| Pricing date: | Jan. 14
|
| Settlement date: | Jan. 20
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.25%
|
| Cusip: | 06366QBL0
|
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