Published on 4/13/2017 in the Prospect News Structured Products Daily.
New Issue: BMO prices $365,000 contingent risk absolute return notes on Gold Miners
By Tali Rackner
Minneapolis, April 13 – Bank of Montreal priced $365,000 of 0% contingent risk absolute return notes with digital upside due March 29, 2019 linked to the VanEck Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the fund closes above its initial level, the payout at maturity will be par plus the digital return of 16%.
If the fund falls but not below the barrier level, 60% of its initial level, the payout at maturity will be par plus the absolute value of the return, subject to a maximum payout of $1,400 per $1,000 of notes.
Otherwise, investors will lose 1% for each 1% decline.
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 fund: | VanEck Vectors Gold Miners ETF
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Amount: | $365,000
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Maturity: | March 29, 2019
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | If fund gains, par plus digital return of 16%; if fund falls by up to 40%, par plus absolute return capped at $1,400 per $1,000 principal amount; otherwise, full exposure to any losses
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Initial level: | $22.81
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Barrier level: | $13.69, 60% of initial level
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Pricing date: | March 28
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Settlement date: | March 31
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.8%
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Cusip: | 06367TTS9
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