By William Gullotti
Buffalo, N.Y., April 5 – Bank of Montreal priced $3.6 million of autocallable barrier notes with contingent coupons due March 31, 2025 linked to an equally-weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo & Co.
The notes will pay a quarterly coupon equal to 10.5% per year if the basket’s closing level is at least 60% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if the basket closes at or above its initial level on any quarterly observation date.
If the notes are not called and the basket finishes at or above its 60% trigger level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will receive a number of shares of each basket component equal to the product of its weighting and $1,000, divided by the component’s initial level. The issuer may opt to pay the cash equivalent of any component’s physical delivery amount.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupons
|
| Underlying basket: | Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co.; equal weights
|
| Amount: | $3.6 million
|
| Maturity: | March 31, 2025
|
| Coupon: | 10.5% per year, payable quarterly if the basket’s closing level is at or above its coupon barrier level on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon if basket finishes at or above trigger level; otherwise, receive a number of shares of each basket component equal to the product of its weighting and $1,000, divided by the component’s initial level; issuer may opt to pay the cash equivalent for any basket component’s physical delivery amount
|
| Call: | At par plus contingent coupon if the basket closes at or above initial level on any quarterly observation date
|
| Initial levels: | $28.49 for BofA, $128.49 for JPMorgan, $37.47 for Wells Fargo
|
| Coupon barrier level: | 60% of initial levels
|
| Trigger level: | 60% of initial levels
|
| Pricing date: | March 27
|
| Settlement date: | March 30
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.35%
|
| Cusip: | 06369NGF2
|
|
|
© 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.
