Text Size Print
Principal At Risk Notes
Bank of Montreal Canadian Pipelines AutoCallable Principal At Risk Notes, Series 637 (CAD), Due January 24, 2023
JHN6467
Product Details
TypeAutoCallable
IssuerBank of Montreal
ClassEquity
Linked toENB, KEY, PPL, IPL, TRP
CurrencyCAD
Issue DateJanuary 24, 2018
Maturity DateJanuary 24, 2023
Term5.0 Years
AutoCall Coupon (Next Call Date)10.50%
AutoCall Level0.00%
Observation DatesAnnual
Excess Participation5.00%
Barrier Level-30.00%
Product Description
  • The Notes offer the potential for a variable return while providing contingent protection against a slight to moderate decline in the price performance of an equally-weighted basket of shares (the “Reference Basket”) over the term of the Notes. The Principal Amount is NOT protected under these Notes.
  • Issuer: Bank of Montreal.
  • Medium Term: 5-year term to maturity (subject to the Notes being automatically called by the Bank).
  • Reference Basket*: Enbridge Inc., Inter Pipeline Ltd., Keyera Corporation, Pembina Pipeline Corporation, TransCanada Corporation
  • AutoCall Feature: The Notes will be automatically called by the Bank if the Basket Return is equal to or above the AutoCall Level (i.e., Basket Return equal to 0%) on any Valuation Date. If the AutoCall feature is triggered, Holders will receive payment of the Principal Amount, plus a Variable Return that increases each Valuation Date. If the Basket Return is never equal to or above the AutoCall Level on any Valuation Date, the Notes will not be automatically called by the Bank and there will be no Variable Return paid on the Notes.
  • Potential Variable Return: The Notes will be automatically called by the Bank if the Basket Return is equal to or above the AutoCall Level on any Valuation Date. If the AutoCall feature is triggered, Holders will receive payment of the Principal Amount plus a Variable Return that increases each Valuation Date.
  • Fixed Return in Year 1: 10.50%; Year 2: 21.00%; Year 3: 31.50%; Year 4: 42.00%; Year 5: 52.50%; (or an annualized return of 10.50%, 10.00%, 9.54%, 9.16% and 8.80%, respectively).
  • Contingent Protection: If the Basket Return is negative, the Principal Amount will be protected so long as the Basket Return is equal to or above the Barrier Level (i.e., Basket Return equal to -30%) on the Final Valuation Date. If the Basket Return is below the Barrier Level on the Final Valuation Date, the Maturity Payment will be equal to the Principal Amount reduced by an amount equal to the Basket Return (which will result in a Maturity Payment of less than the Principal Amount as the Basket Return will be a negative amount), subject to the Minimum Payment Amount. The calculation and timing of the payments at Maturity may be adjusted upon the occurrence of certain special circumstances.
  • Daily Secondary Market: Provided by BMO Capital Markets (may be subject to an early trading charge of up to 3.50% declining to zero over 180 days after the Issue Date and other limitations as described in the Prospectus).

Current Status
Update as ofMay 22, 2018
Remaining Term4.67 years
Current ETC2.25%
Current Bid Price historical $90.83