Published on 7/5/2016 in the Prospect News Structured Products Daily.
New Issue: BMO prices $190,000 contingent risk absolute return notes on oil & gas ETF
By Tali Rackner
Norfolk, Va., July 5 – Bank of Montreal priced $190,000 of 0% contingent risk absolute return notes due June 29, 2018 with digital upside linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund finishes above the initial level, the payout at maturity will be par plus the digital return of 18%.
If the fund falls but finishes above the 60% barrier level, the payout will be par plus the absolute value of the return, up to a maximum return of $1,400 per $1,000 of notes.
Otherwise, investors will be fully exposed to any losses.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Contingent risk absolute return notes with digital upside
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Underlying ETF: | SPDR S&P Oil & Gas Exploration & Production ETF
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Amount: | $190,000
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Maturity: | June 29, 2018
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If ETF return is positive, par plus digital return of 18%; if fund falls but not by more than 40%, par plus absolute value of return, up to a maximum downside redemption amount of $1,400 per $1,000 principal amount; if fund falls by more than 40%, full exposure to any losses
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Initial level: | $32.81
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Barrier level: | $19.686, 60% of initial level
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Pricing date: | June 27
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Settlement date: | June 30
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.8%
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Cusip: | 06367TGA2
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