Published on 12/28/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of Montreal sells $38,000 16% reverse exchangeables tied to Yahoo!
By Marisa Wong
Madison, Wis., Dec. 27 - Bank of Montreal priced $38,000 of 16% annualized reverse exchangeable notes due March 30, 2012 linked to Yahoo! Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The payout at maturity will be par unless Yahoo! stock closes below the trigger price - 75% 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 of Yahoo! stock equal to $1,000 divided by the initial share price or, at the issuer's option, the cash equivalent.
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: | Yahoo! Inc. (Symbol: YHOO)
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Amount: | $38,000
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Maturity: | March 30, 2012
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Coupon: | 16%, payable monthly
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Price: | Par
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Payout at maturity: | If Yahoo! stock ever closes below trigger price and finishes below initial price, shares of Yahoo! stock equal to $1,000 divided by the initial share price or, at the issuer's option, the cash equivalent; otherwise, par
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Initial share price: | $15.99
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Trigger price: | $11.99, 75% of initial share price
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Pricing date: | Dec. 22
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Settlement date: | Dec. 30
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.75%
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Cusip: | 06366QN78
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