New Issue: BMO sells $712,000 contingent risk absolute return notes on S&P 500

By Marisa Wong

Morgantown, W.Va., Dec. 11 – Bank of Montreal priced $712,000 of 0% contingent risk absolute return notes due Nov. 29, 2019 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes above the initial level, the payout at maturity will be par plus the index gain.

If the index falls but has never fallen below the 78% barrier level during the life of the notes, the payout will be par plus the absolute value of the return, up to a maximum downside redemption amount of $1,220 per $1,000 principal amount.

Otherwise, investors will lose 1% for every 1% decline of the index from its initial level.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Contingent risk absolute return notes
Underlying index:	S&P 500
Amount:	$712,000
Maturity:	Nov. 29, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus any index gain; if index falls but has never fallen below barrier level during life of notes, par plus absolute value of return, up to maximum downside redemption amount of $1,220 per $1,000 principal amount; otherwise, 1% loss for every 1% decline of index from initial level
Initial level:	2,601.42
Barrier level:	2,029.11, 78% of initial level
Pricing date:	Nov. 27
Settlement date:	Nov. 30
Agent:	BMO Capital Markets Corp.
Fees:	None
Cusip:	06367TQ52

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