By Wendy Van Sickle
Columbus, Ohio, May 1 – Bank of Montreal priced $250,000 of autocallable barrier notes with contingent coupon due April 30, 2021 linked to the VanEck Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annualized rate of 9%, if the fund's share price is at least 65% of the initial share price on the observation date for that quarter.
The notes will be automatically redeemed at par plus the contingent coupon if the ETF's shares close above the initial share price on any quarterly call date beginning in January 2018.
If the notes are not called, the payout at maturity will be par plus the contingent coupon unless the final share price is less than 65% of the initial share price, in which case investors will be fully exposed to the decline from the initial share price.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupon
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| Underlying fund: | VanEck Vectors Gold Miners exchange-traded fund
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| Amount: | $250,000
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| Maturity: | April 30, 2021
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| Coupon: | Quarterly at annualized rate of 9% if fund closes at or above 65% of initial level on observation date for quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless fund falls by more than 35%, in which case full exposure to losses
|
| Call: | At par plus continent coupon if fund closes at or above initial level on any quarterly call date beginning in January 2018
|
| Initial price: | $22.22
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| Barrier price: | $14.44, 65% of initial price
|
| Pricing date: | April 25
|
| Settlement date: | April 28
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 3.25%
|
| Cusip: | 06367TVM9
|
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