Text Size Print
Principal At Risk Notes
Bank of Montreal Redwood Canadian Preferred Share AutoCallable Principal At Risk Notes, Series 685 (CAD) (F-Class), Due March 8, 2023
JHN6544
Product Details
TypeAutoCallable
IssuerBank of Montreal
ClassEquity
Linked toRedwood Canadian Preferred Share ETF [RPS QF Equity]
CurrencyCAD
Issue DateMarch 15, 2018
Maturity DateMarch 08, 2023
Term5.0 Years
AutoCall Coupon (Next Call Date)15.00%
AutoCall Level100.00%
Observation DatesAnnual
Excess Participation5.00%
Barrier Protection-20.00%
Product Description
  • The Notes offer the potential for a variable return while providing contingent protection against a slight to moderate decline in the price of the units of the Redwood Canadian Preferred Share ETF (the “Reference ETF”) 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 ETF: Redwood Canadian Preferred Share ETF is an exchange-traded fund that focuses on Canadian income producing securities and Canadian equities. The Reference ETF will invest in preferred shares of Canadian issuers, with a focus on floating rate preferred securities; dividend paying Canadian equities; income and royalty trusts; ETFs; and fixed- income investments, with a view to consistent interest or distribution payments.*
  • AutoCall Feature: The Notes will be automatically called by the Bank if the Closing Price of the units of the Reference ETF is equal to or above the AutoCall Level (i.e., 100% of the Initial Price) 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 Closing Price of the units of the Reference ETF 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 Closing Price of the units of the Reference ETF 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: 15.00%; Year 2: 20.00%; Year 3: 25.00%; Year 4: 30.00%; Year 5: 35.00%; (or an annualized return of 15.00%, 9.52%, 7.71%, 6.77% and 6.18%, respectively).
  • Contingent Protection: If the ETF Return is negative, the Principal Amount will be protected so long as the Final Price is equal to or above the Barrier Level (i.e., 80% of the Initial Price) on the Final Valuation Date. If the Final Price is below the Barrier Level on the Final Valuation Date, the Maturity Payment will be equal to the Principal Amount reduced by the ETF Return (which will be a negative amount equal to the decline in the unit price of the Reference ETF), 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 limitations as described in the Prospectus).

Current Status
Update as ofMay 25, 2018
Remaining Term4.78 years
Current ETC0.00%
Current Bid Price historical $98.64