Published on 4/28/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $300,000 notes tied to commodity spot prices, futures contracts
By Toni Weeks
San Diego, April 28 - Bank of Montreal priced $300,000 of commodity-linked notes due April 28, 2017 linked to a basket of three exchange-traded commodity futures contracts and four spot prices, according to a 424B2 filing with the Securities and Exchange Commission.
The equally weighted basket components are the copper, nickel, silver and gold spots prices; the sugar futures contract; the Brent crude oil futures contract and the cotton futures contract.
The notes will pay a coupon each year equal to the sum of the weighted component returns of the basket commodities, subject to a floor of zero. If a basket commodity's return is positive, its component return will be fixed at 11%. If a basket commodity's return is negative, its component return will be the greater of the commodity return and negative 15%.
The payout at maturity will be par plus the final coupon payment, if any.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Commodity-linked notes
|
| Basket components: | Copper, nickel, silver and gold spot prices; sugar futures contract, Brent crude oil futures contract, cotton futures contract
|
| Amount: | $300,000
|
| Maturity: | April 28, 2017
|
| Coupon: | Paid annually if sum of weighted component returns of basket commodities greater than zero. If commodity return is positive, component return will equal 11%; if negative, component return will equal greater of commodity return and negative 15%
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon, if any
|
| Initial prices: | $9,455.50 for copper, $26,240 for nickel, $4,548 for silver, $1,497.50 for gold, 24.94 cents for sugar, $124.14 for Brent crude oil; cotton futures contract will be its closing price on first trading day due to market disruption that occurred on pricing date
|
| Pricing date: | April 26
|
| Settlement date: | April 29
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 4%
|
| Cusip: | 06366QGE1
|
© 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.
