BMO eyes 12.2% autocallable cash-settled notes tied to oil, gold ETFs

By Devika Patel

Knoxville, Tenn., May 15 – Bank of Montreal plans to price 12.2% autocallable cash-settled notes with conditional interest payments due May 29, 2020 linked to the lesser performing of the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund and the VanEck Vectors Gold Miners exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

Interest will be payable monthly if each ETF closes above its coupon barrier, 60% of its initial level, on the observation date for that month.

The notes will be called at par plus the coupon if each ETF closes above its initial level on any quarterly call date beginning on Aug. 28, 2017.

The payout at maturity will be par plus the coupon due unless either ETF finishes below the 60% trigger level, in which case investors will lose 1% for each 1% decline of the worse performing ETF from its initial level.

BMO Capital Markets Corp. is the agent.

The notes (Cusip: 06367TWA4) will price on May 25 and settle on May 31.

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