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Principal At Risk Notes
Bank of Montreal U.S. Equity (CAD Hedged) Callable Income Principal At Risk Notes, Series 583 (CAD) (F-Class)
JHN6686
Product Details
TypeCallable Income
IssuerBank of Montreal
ClassEquity
Linked toBMO S&P 500 Hedged to CAD Index ETF (ZUE CT Equity)
CurrencyCAD
Issue DateMay 02, 2018
Maturity DateMay 02, 2025
Term7.0 Years
Contingent Coupon7.00% Per Annum
Payment FrequencySemi-Annual
Coupon Knock-Out-30.00%
Barrier Protection-30.00%
Autocall Level110.00%
Observation DatesSemi-Annual
Maximum Payment$149.00
Minimum Payment$1.00
Product Description
  • The Notes offer semi-annual coupon payments for investors while providing contingent protection against a slight to moderate decline in the unit price of the BMO S&P 500 Hedged to CAD Index 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: 7-year term to maturity (subject to the Notes being automatically called by the Bank).
  • Reference ETF: BMO S&P 500 Hedged to CAD Index ETF seeks to replicate, to the extent possible, the performance, net of expenses, of the S&P 500 Hedged to Canadian Dollars Index. The S&P 500 Hedged to Canadian Dollars Index is a float-adjusted market capitalization-weighted index of securities of 500 of the largest U.S. public issuers provided by S&P Dow Jones Indices LLC hedged to Canadian Dollars.
  • Contingent Semi-Annual Coupon Payments: Semi-annual Coupons equal to 3.50% (equivalent to 7.00% per annum), provided that the Closing Price of the units of the Reference ETF is equal to or above the Coupon Knock-Out Level (i.e., 70% of the Initial Price) on the applicable Observation Date. If the Closing Price of the units of the Reference ETF is below the Coupon Knock-Out Level on an Observation Date, then no Coupon will be payable to a Holder on the related Coupon Payment Date.
  • 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., 110% of the Initial Price) on any Observation Date. If the AutoCall feature is triggered, Holders will receive the Principal Amount plus the applicable Coupon on the corresponding Coupon Payment Date (in this case, the Call Date). If the Closing Price of the units of the Reference ETF is never equal to or above the AutoCall Level on any Observation Date, the Notes will not be automatically called by the Bank. If the Notes are automatically called by the Bank before Maturity, the Notes will be cancelled and Holders will not be entitled to receive any subsequent payments in respect of the Notes.
  • 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., 70% 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 ofApril 19, 2018
Remaining Term7.00 years
Current ETC
Current Bid Price historical $100.00