Published on 7/28/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $845,000 22.5% reverse exchangeables linked to Silvercorp Metals
By Susanna Moon
Chicago, July 28 - Bank of Montreal priced $845,000 of 22.5% annualized reverse exchangeable notes due Oct. 31, 2011 linked to Silvercorp Metals Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Silvercorp Metals shares close below the trigger price - 75% 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 Silvercorp Metals shares equal to $1,000 divided by the initial share price or, at the issuer's option, the cash equivalent.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Reverse exchangeable notes
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Underlying stock: | Silvercorp Metals Inc. (Symbol: SVM)
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Amount: | $845,000
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Maturity date: | Oct. 31, 2011
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Coupon: | 22.5%, payable monthly
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Price: | Par
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Payout at maturity: | Par unless Silvercorp Metals shares fall below trigger price during life of notes and finish below initial share price, in which case 88.4956 Silvercorp Metals shares
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Initial price: | $11.30
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Trigger price: | $8.48, 75% of initial price
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Pricing date: | July 26
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Settlement date: | July 29
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.75%
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Cusip: | 06366QRR0
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