Principal At Risk Notes
Bank of Montreal AutoCallable Principal At Risk Notes, Series 27
|Bank of Montreal|
|S&P/TSX 60 Index|
|July 10, 2013|
|July 10, 2018|
- The objective of the Notes is to generate a variable coupon for investors while offering contingent downside protection against a slight to moderate decline in the S&P/TSX 60 Index (Price Return Version) over the next five years. The Principal Amount is NOT protected under these Notes.
- Medium-Term: 5-year term to maturity.
- AutoCall Feature: The Notes have been designed to be automatically called by the Bank if the price return of the Reference Index is unchanged or positive on any Valuation Date during the term of the Notes. If the AutoCall feature is triggered, investors will receive payment of their original principal investment in the Notes, plus a Variable Coupon that increases each successive year during the term. If the Index Return is negative on each Valuation Date, there will be no Variable Coupon paid on the Notes.
- Potential Variable Coupon: If the Reference Index closes at or above AutoCall Level on any Valuation Date, the Notes will be automatically called by the Bank and investors will receive payment of a Variable Coupon, plus 5.00% additional participation in the performance of the Reference Index above the Coupon Amount specified for that Valuation Date.
- Coupon Amount in Year 1: 9.00%; Year 2: 16.00%; Year 3: 21.00%; Year 4: 26.00%; Year 5: 31.00%
Contingent Protection: The principal amount will be fully protected against a 20% decline in S&P/TSX 60 Index measured at maturity only. However, holders will be exposed to the full decline in the Reference Index if the Reference Index closes below the Barrier Level on the Final Valuation Date.
Daily secondary market provided by BMO Capital Markets (may be subject to an early trading charge and other limitations as described in the Prospectus).
|July 10, 2014|
Bid Price (i) may be subject to an Early Trading Charge (equal to a percentage of the Principal Amount), (ii) on the date of sale may be at a discount from the maturity payment that would be payable if the Principal At Risk Notes were maturing on such date, and (iii) reflects the most recent price available. The Bid Price may fluctuate and/or be adversely affected by a number of factors, including certain factors discussed in the Offering Documents.
Past performance is not indicative of future performance and returns, if any, will fluctuate with any change in value of the reference asset(s). This information should not be construed as an estimate or forecast of the performance of the reference asset(s) or of the return that a holder may realize.
The above summary and the other material on this website is for information purposes only and does not constitute an offer to sell or a solicitation to purchase Principal At Risk Notes. Investors should read the Base Shelf Prospectus and applicable Prospectus Supplement and/or Pricing Supplement (collectively, the “Offering Documents”) which set out the specific terms and risk factors associated with an investment in the Principal At Risk Notes carefully and discuss the suitability of the Principal At Risk Notes with their investment advisor before making any investment decisions. The offering and sale of Principal At Risk Notes may be prohibited or restricted by laws in certain jurisdictions. Principal At Risk Notes may only be purchased where they may be lawfully offered for sale and only through individuals qualified to sell them. For a copy of the applicable Offering Documents, click on the link above.
Amounts, if any, paid to holders of Principal At Risk Notes will depend on the performance of the reference asset(s) described in the applicable Offering Documents. Bank of Montreal does not guarantee that holders will receive an amount equal to the amount invested in the Principal At Risk Notes and does not guarantee that any return or distributions will be paid on the Principal At Risk Notes (other than any minimum amount that may be stipulated in the applicable Offering Documents). Since the principal amount of the Principal At Risk Notes will not be guaranteed and will be at risk, holders may not receive any amount at maturity (other than any minimum amount that may be stipulated in the applicable Offering Documents) and holders could lose substantially all of their investment in the Principal At Risk Notes. Please see the Offering Documents for complete details, including the precise formula for determining the return, if any, on a Principal At Risk Note.