Bank of Montreal plans 3.25% autocallable cash-settled notes with step-up call price on Gold Miners

By Toni Weeks

San Luis Obispo, Calif., March 3 - Bank of Montreal plans to price 3.25% autocallable cash-settled notes with step-up call price due March 31, 2016 linked to the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable on March 31, 2015 and at maturity.

On either of two annual call dates, if the fund's level is greater than the initial level, the notes will be called. The call return will be 10% on March 26, 2015 and 20% on March 28, 2016.

If the notes are not called, the payout at maturity will be par if the fund falls by up to 22.5%. Investors will share in losses if the final price is less than the 77.5% trigger level.

The notes (Cusip: 06366RTE5) are expected to price March 26 and settle March 31.

BMO Capital Markets Corp. is the agent.

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