By Wendy Van Sickle
Columbus, Ohio, Feb. 7 – Bank of Montreal priced $1.4 million of autocallable cash-settled notes with conditional interest payments due May 4, 2018 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly at an annual rate of 9% if each index closes above its coupon barrier, 70% of its initial level, on the observation date for that month.
The notes will be called at par plus the coupon if each index closes above its initial level on any call date beginning Aug. 1, 2017.
The payout at maturity will be par unless either index closes below the 70% trigger level during the life of the notes and either index finishes below its initial level, in which case investors will lose 1% for each 1% decline of the worse performing index.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable cash-settled notes with conditional interest payments
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $1.4 million
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| Maturity: | May 4, 2018
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| Coupon: | 9%, payable monthly, if each index closes above coupon barrier on observation date for that month
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| Price: | Par of $1,000
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| Payout at maturity: | Par unless either index finishes below its initial level and either index ever closes below its trigger level during life of notes, in which case investors will be fully exposed to any losses of lesser performing index
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| Call: | At par plus the coupon if both indexes close above their initial levels on any monthly call date beginning Aug. 1, 2017
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| Initial levels: | 2,279.55 for S&P and 1,361.228 for Russell
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| Coupon barrier/triggers: | 70% of initial levels
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| Pricing date: | Feb. 1
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| Settlement date: | Feb. 6
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06367TSH4
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