By Kiku Steinfeld
Chicago, Dec. 21 – Bank of Montreal priced $1 million of autocallable reverse convertible notes with contingent coupons due March 14, 2022 linked to the common stock of Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 8.75% if the stock closes above its 70% coupon barrier level on the related observation date.
The notes will be called at par if the shares close at or above the initial share price on any monthly observation date after six months.
If the notes are not called, the payout at maturity will be par unless the shares finish below their trigger level, 70% of their initial price, in which case investors will receive a number of shares equal to $1,000 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable reverse convertible notes
|
| Underlying stock: | Wells Fargo & Co.
|
| Amount: | $1,001,000
|
| Maturity: | March 14, 2022
|
| Coupon: | 8.75% annual rate, payable monthly if stock closes above coupon barrier level on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below trigger price, in which case a number of shares equal to $1,000 divided by the initial share price or cash value
|
| Call: | At par if shares close at or above initial share price on any monthly trigger observation date after six months
|
| Initial level: | $29.05
|
| Trigger price: | $20.34; 70% of initial share price
|
| Pricing date: | Dec. 9
|
| Settlement date: | Dec. 14
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.25%
|
| Cusip: | 06368E7G1
|
|
|
© 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.
