By Kiku Steinfeld
Chicago, Oct. 26 – Bank of Montreal priced $1.18 million of autocallable reverse convertible notes with contingent coupons due Nov. 22, 2021 linked to the First Trust Dow Jones Internet Index fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly at an annual rate of 7% if the fund closes at or above its 71% coupon barrier on a related observation date.
The notes will be called at par if the shares close at or above the initial share price on any monthly trigger observation date after six months.
The payout at maturity will be par unless the shares finish below the initial price and close below their trigger level, 71% of their initial price, during the life of the notes, in which case investors will receive a number of shares equal to $1,000 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
BMO Capital Markets is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable reverse convertible notes with contingent coupons
|
| Underlying fund: | First Trust Dow Jones Internet Index fund
|
| Amount: | $1,175,000
|
| Maturity: | Nov. 22, 2021
|
| Coupon: | 7% payable monthly if the fund closes at or above its coupon barrier level on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless fund finishes below initial price and closes below trigger price during life of notes, in which case a number of shares equal to $1,000 divided by initial share price
|
| Call: | At par if shares close at or above initial share price on any monthly trigger observation date after six months
|
| Initial level: | $199.38
|
| Coupon barrier: | $141.56; 71% of initial share price
|
| Trigger price: | $141.56; 71% of initial share price
|
| Pricing date: | Oct. 15
|
| Settlement date: | Oct. 20
|
| Agent: | BMO Capital Markets
|
| Fees: | 1.5%
|
| Cusip: | 06368E2A9
|
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