By William Gullotti
Buffalo, N.Y., May 7 – Bank of Montreal priced $1.23 million of callable barrier notes with contingent coupons due Oct. 31, 2025 linked to the stock performance of Palantir Technologies Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon equal to 22.4% per year if the stock’s closing level is at or above its 60% coupon barrier level on the relevant observation date.
The notes will be callable at par plus any coupon otherwise due on any monthly observation date after three months.
If the notes are not called and the stock finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the stock finishes below its coupon barrier but at or above its 50% trigger level, the payout will be par. Otherwise, investors will lose 1% for each 1% of stock decline from its initial level.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Callable barrier notes with contingent coupons
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Underlying stock: | Palantir Technologies Inc.
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Amount: | $1,231,000
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Maturity: | Oct. 31, 2025
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Coupon: | 22.4% per year, payable monthly if the stock’s closing level is at or above its coupon barrier level on the relevant observation date
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Price: | Par
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Payout at maturity: | Par plus final coupon if stock finishes at or above coupon barrier; if stock finishes below coupon barrier but at or above trigger level, par; otherwise, lose 1% for each 1% of stock decline from initial level
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Call option: | At par plus any coupon due on any monthly observation date after three months
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Initial level: | $21.59
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Coupon barrier level: | $12.95; 60% of initial level
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Trigger level: | $10.80; 50% of initial level
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Pricing date: | April 24
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Settlement date: | April 29
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.875%
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Cusip: | 06376ADM9
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