Published on 12/30/2010 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal prices $210,000 11% reverse exchangeables linked to Wells Fargo
By Angela McDaniels
Tacoma, Wash., Dec. 30 - Bank of Montreal priced $210,000 of reverse exchangeable notes due June 30, 2011 linked to the common stock of Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The six-month notes carry an annualized coupon of 11%. Interest is payable monthly.
The payout at maturity will be par unless Wells Fargo stock closes below the trigger price - 80% 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 shares equal to $1,000 divided by the initial share price or, at the issuer's option, a cash amount equal to the value of those shares.
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: | Wells Fargo & Co. (Symbol: WFC)
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Amount: | $210,000
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Maturity: | June 30, 2011
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Coupon: | 11%, payable monthly
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Price: | Par
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Payout at maturity: | If Wells Fargo stock closes below trigger price during life of notes and finishes below initial price, number of Wells Fargo shares equal to $1,000 divided by initial price or equivalent amount in cash; otherwise, par
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Initial stock price: | $31.20
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Trigger price: | $24.96, 80% of initial price
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Pricing date: | Dec. 28
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Settlement date: | Dec. 31
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Agent: | BMO Capital Markets Corp.
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Fees: | 2.25%
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Cusip: | 06366QBE6
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