NEW YORK, Dec. 1, 2020 /PRNewswire/ - Bank of Montreal (TSX: BMO) (NYSE: BMO) today
announced that it intends to redeem all of the outstanding
securities in each of the series set forth in the following table
(collectively, the "Affected Securities"):
NYSE
Arca
Ticker
|
ETN Name and
Prospectus Addendum/Pricing
Supplement*
|
CUSIP
|
Call Settlement
Date
|
BNKO
|
MicroSectorsTM U.S. Big Banks Index 2X
Leveraged
ETNs due March 25, 2039
|
063679799
|
December 18,
2020
|
KNAB
|
MicroSectorsTM U.S. Big Banks Index
Inverse ETNs
due March 25, 2039
|
063679765
|
December 18,
2020
|
BNKZ
|
MicroSectorsTM U.S. Big Banks Index -2X
Inverse
Leveraged ETNs due March 25 2039
|
063679773
|
December 18,
2020
|
NRGO
|
MicroSectorsTM U.S. Big Oil Index 2X
Leveraged
ETNs due March 25, 2039
|
063679757
|
December 18,
2020
|
YGRN
|
MicroSectorsTM U.S. Big Oil Index Inverse
ETNs
due March 25, 2039
|
063679740
|
December 18,
2020
|
NRGZ
|
MicroSectorsTM U.S. Big Oil Index -2X
Inverse
Leveraged ETNs due March 25, 2039
|
063679732
|
December 18,
2020
|
* The table above
provides, for each of the Affected Securities, which are identified
by their names, a hyperlink to the relevant prospectus addendum and
pricing supplement. Hyperlinks to the applicable base
prospectus and prospectus supplement are contained in such
prospectus addendum and pricing supplements.
|
Capitalized terms used but not defined herein shall have the
meanings ascribed to such terms in the relevant pricing supplement
for the Affected Securities.
With respect to each series of Affected Securities, the Call
Settlement Amount payable on the Call Settlement Date will be
calculated as specified in the relevant pricing supplement, as
applicable, for the Affected Securities. BMO will pay the
applicable Call Settlement Amount to investors holding Affected
Securities on the applicable Call Settlement Date.
BMO intends to send a notice of redemption to holders of the
Affected Securities on December 4,
2020. For each series of Affected Securities, the Call
Settlement Amount will equal the arithmetic mean of the closing
Indicative Note Values on each Index Business Day in the related
Call Measurement Period. The Call Measurement Period is
expected to consist of the following five trading days:
December 7, 2020, December 8, 2020, December
9, 2020, December 10, 2020 and
December 11, 2020.
Each series of Affected Securities will be delisted from the
NYSE Arca exchange prior to the open of trading on the Call
Settlement Date.
Holders of the Affected Securities may choose to continue to
hold their securities until the Call Settlement Date, or may choose
to sell or redeem their Affected Securities prior to the applicable
Call Settlement Date, in accordance with the terms of the Affected
Securities. BMO has announced the waiver of the minimum early
redemption size for each of the Affected Securities. Prior to the
waiver, holders of the Affected Securities were required to redeem
at least 25,000 ETNs at one time in order to exercise their right
to redeem them.
None of the other ETNs that BMO has previously issued are
affected by this announcement.
BMO does not intend to issue or register any additional Affected
Securities on or after the date of this press release. BMO and its
affiliates also intend to suspend any further sales from inventory
of the Affected Securities on December 4,
2020. The market value of these securities may be influenced
by, among other things, supply and demand for the Affected
Securities. It is possible that the suspension of any further sales
of the Affected Securities by BMO may influence the market value of
the Affected Securities and the liquidity of the market for the
Affected Securities, potentially leading to insufficient supply,
and causing the Affected Securities to trade at a premium above
their closing or intraday indicative value. Any such premium may
subsequently decrease at any time and for any reason without
warning, resulting in financial loss to investors who paid this
premium when they acquired their Affected Securities.
Investors who purchase the Affected Securities at any time prior
to the Call Settlement Date for an amount that is greater than the
applicable Call Settlement Amount that they will receive on the
Call Settlement Date will suffer a loss on their investment.
Furthermore, investors who sell the Affected Securities at any time
prior to delisting for an amount that is less than the applicable
Call Settlement Amount they would have received on the Call
Settlement Date will also suffer a loss. In either case, such
losses could be significant. Investors will not receive any other
compensation or amount for the loss of the investment opportunity
of holding the Affected Securities.
About BMO Financial Group
Serving customers for
200 years and counting, BMO is a highly diversified financial
services provider - the 8th largest bank, by assets, in North
America. With total assets of $949 billion as
of October 31, 2020, and a team of diverse and highly engaged
employees, BMO provides a broad range of personal and commercial
banking, wealth management and investment banking products and
services to more than 12 million customers and conducts business
through three operating groups: Personal and Commercial Banking,
BMO Wealth Management and BMO Capital Markets.
Please see the pricing supplement relating to the Notes for
important information about Solactive AG, the licensor of the
Solactive MicroSectors™ U.S. Big Oil Index and Solactive
MicroSectors™ U.S. Big Bank Index.
Bank of Montreal, the issuer of
the Affected Securities, has filed a registration statement
(including a pricing supplement, prospectus supplement and
prospectus) with the SEC regarding each of the Affected Securities.
Please read those documents and the other documents relating to the
Affected Securities that Bank of Montreal has filed with the SEC for more
complete information about Bank of Montreal and the applicable Affected
Securities. These documents may be obtained without cost by
visiting EDGAR on the SEC website at www.sec.gov. Alternatively,
Bank of Montreal, and any agent or
dealer that participated in the offering of the Affected
Securities, will arrange to send the applicable pricing supplement,
the prospectus supplement and the prospectus if so requested by
calling toll-free at 1-877-369-5412.
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SOURCE BMO Financial Group