Obligation Montreal Bank 24% ( US06367WYP21 ) en USD

Montreal Bank

100 % ⇌

Canada

US06367WYP21 ( en USD )

24% par an ( paiement semestriel )

18/06/2021 - Obligation échue

Prospectus brochure de l'obligation Bank of Montreal US06367WYP21 en USD 24%, échue

1 000 USD

5 788 000 USD

06367WYP2

N/A

N/A

La Banque de Montréal (BMO) est une institution financière multinationale canadienne offrant une vaste gamme de services bancaires de détail, de gestion de patrimoine, de marchés des capitaux et de services bancaires aux entreprises à l'échelle mondiale.

L'analyse de l'obligation de type dette senior émise par la Banque de Montréal, une institution financière canadienne de premier plan reconnue pour sa stabilité et sa présence significative dans les services bancaires mondiaux, révèle un instrument identifié par le code ISIN US06367WYP21 et le code CUSIP 06367WYP2, libellé en dollars américains (USD), représentant une émission d'une taille totale de 5 788 000 unités, accessible à l'achat avec une taille minimale de 1 000, et proposant un taux d'intérêt de 24 avec une fréquence de paiement semestrielle (2 fois par an), le point essentiel étant sa maturité fixée au 18 juin 2021, date à laquelle cette obligation est arrivée à terme et a été intégralement remboursée à 100% de son prix sur le marché, attestant ainsi du bon déroulement de son cycle de vie financier et de son paiement aux porteurs.

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424B2 1 p316200424b2.htm ARC 709

Registration Statement No. 333-217200
Filed Pursuant to Rule 424(b)(2)

Pricing Supplement dated March 13, 2020 to the Prospectus dated April 27, 2017,
the Prospectus Supplement dated September 23, 2018, and the Product Supplement dated May 1, 2017

US$5,788,000
Autocallable Cash-Settled Notes with Contingent Interest Payments due June 18, 2021
Linked to the Lesser Performing of the S&P 500® Index, the Russell 2000® Index,
the iShares® MSCI Emerging Markets ETF and the VanEck Vectors® Gold Miners ETF

·
This pricing supplement relates to an offering of Autocallable Cash-Settled Notes with Contingent Interest Payments linked to the Lesser
Performing of the S&P 500® Index, the Russell 2000® Index, the iShares® MSCI Emerging Markets ETF and the VanEck Vectors® Gold
Miners ETF (the "Underlying Assets").
·
The notes are designed for investors who are seeking conditional interest payments equal to 2.00% per month (or 24.00% per annum) of the
principal amount, as well as a return of principal if the Closing Level of each Underlying Asset on any Call Date beginning on September
15, 2020 is greater than 100% of its Initial Level (the "Call Level"). Investors should be willing to have their notes automatically redeemed
prior to maturity and be willing to lose some or all of their principal at maturity.
·
The notes will bear interest at a rate equal to 2.00% of the principal amount per month ($20.00 per $1,000 in principal amount) if the value
of each Underlying Asset is greater than its Coupon Barrier Level as of the applicable monthly Observation Date. Any interest will be
payable on the 18th day of each month (or the next business day, if not a business day), beginning on April 20, 2020, until the maturity date,
subject to the automatic redemption feature.
·
If on any Call Date beginning on September 15, 2020, the Closing Level of each Underlying Asset is greater than its Call Level, the notes
will be automatically called. On the applicable Call Settlement Date, for each $1,000 principal amount, investors will receive the principal
amount plus the applicable interest payment.
·
The notes do not guarantee any return of principal at maturity. Instead, if the notes are not automatically called, the payment at maturity will
be based on the Final Level of each Underlying Asset and whether the Closing Level of any Underlying Asset has declined from its Initial
Level below its Trigger Level during the Monitoring Period (a "Trigger Event"), as described below.
·
If the notes are not automatically redeemed, and a Trigger Event occurs with respect to any Underlying Asset and the Final Level of any
Underlying Asset is less than its Initial Level, investors will be subject to one-for-one loss of the principal amount of the notes for any
percentage decrease in the Lesser Performing Underlying Asset from its Initial Level to its Final Level. In such a case, you will receive a
cash amount at maturity that is less than the principal amount.
·
The notes will not be listed on any securities exchange.
·
All payments on the notes are subject to the credit risk of Bank of Montreal.
·
The offering priced on March 13, 2020, and the notes will settle through the facilities of The Depository Trust Company on March 18, 2020.
·
The notes are scheduled to mature on June 18, 2021.
·
The notes will be issued in minimum denominations of $1,000 and integral multiples of $1,000.
·
Our subsidiary, BMO Capital Markets Corp. ("BMOCM"), is the agent for this offering. See "Supplemental Plan of Distribution (Conflicts
of Interest)" below.
·
The notes will not be subject to conversion into our common shares or the common shares of any of our affiliates under subsection 39.2(2.3)
of the Canada Deposit Insurance Corporation Act (the "CDIC Act").
Coupon Barrier Levels
and Trigger Levels
Proceeds to
Autocallable
Ticker
Initial
(65% of the
Principal Price to
Agent's
Bank of
Note Number
Underlying Assets
Symbols Levels
Initial Levels)*
CUSIP
Amount Public(1) Commission(1) Montreal
ARC709
S&P 500® Index
SPX
2,711.02
1,762.16
06367WYP2$5,788,000 100.00%
0.25%
99.75%

Russell 2000® Index
RTY 1,210.135
786.588

US$14,470 US$5,773,530

iShares® MSCI Emerging Markets ETF
EEM
$36.14
$23.49

VanEck Vectors® Gold Miners ETF
GDX
$19.00
$12.35

* Rounded to two decimal places in the case of the SPX, the EEM and the GDX, and three decimal places in the case of the RTY.
(1) Certain dealers who purchased the notes for sale to certain fee-based advisory accounts may have foregone some or all of their selling concessions, fees or commissions. The
public offering price for investors purchasing the notes in these accounts was between $997.50 and $1,000 per $1,000 in principal amount.
Investing in the notes involves risks, including those described in the "Selected Risk Considerations" section beginning on page P-5 of this pricing supplement, the
"Additional Risk Factors Relating to the Notes" section beginning on page PS-6 of the product supplement, and the "Risk Factors" sections beginning on page S-1 of the
prospectus supplement and on page 8 of the prospectus.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the notes or passed upon the accuracy of this
pricing supplement, the product supplement, the prospectus supplement or the prospectus. Any representation to the contrary is a criminal offense.
The notes will be our unsecured obligations and will not be savings accounts or deposits that are insured by the United States Federal Deposit Insurance Corporation, the
Deposit Insurance Fund, the Canada Deposit Insurance Corporation or any other governmental agency or instrumentality or other entity.
On the date of this pricing supplement, based on the terms set forth above, the estimated initial value of the notes is $873.10 per $1,000 in principal amount. As discussed in
more detail in this pricing supplement, the actual value of the notes at any time will reflect many factors and cannot be predicted with accuracy.

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BMO CAPITAL MARKETS

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Key Terms of the Notes:

Underlying Assets:
The S&P 500® Index (ticker symbol: SPX), the Russell 2000® Index (ticker symbol: RTY), the
iShares® MSCI Emerging Markets ETF (ticker symbol: EEM) and the VanEck Vectors® Gold Miners
ETF (ticker symbol: GDX). See the section below entitled "The Underlying Assets" for additional
information about the Underlying Assets.

Conditional Coupon:
If the Closing Level of each Underlying Asset is greater than its respective Coupon Barrier Level as of
the applicable monthly Observation Date, investors will receive an interest payment for that month.
Holders of the notes may not receive any interest payments during the term of the notes.

Interest Rate:
2.00% of the principal amount per month, if payable, unless earlier redeemed. Accordingly, each
interest payment, if payable, will equal $20.00 for each $1,000 in principal amount per month.

Observation Dates:
The third (3rd) scheduled trading day prior to the applicable interest payment date. Each Observation
Date is subject to postponement, as set forth in the product supplement in the section "General Terms
of the Notes--Market Disruption Events."

Interest Payment Dates:
Interest, if payable, will be paid on the 18th day of each month (or the next business day, if not a
business day), beginning on April 20, 2020, until the maturity date, subject to the automatic
redemption feature.

Automatic Redemption:
If, on any monthly Call Date beginning on September 15, 2020, the Closing Level of each Underlying
Asset is greater than its Call Level, the notes will be automatically redeemed.

Payment upon Automatic
If the notes are automatically redeemed, then, on the applicable Call Settlement Date, for each $1,000
Redemption:
principal amount, investors will receive the principal amount plus the applicable interest payment.

Call Dates:
The third (3rd) business day prior to a Call Settlement Date, beginning on September 15, 2020. Each
Call Date is subject to postponement, as set forth in the product supplement in the section "General
Terms of the Notes--Market Disruption Events."

Call Settlement Dates:
The 18th day of each month (or the next business day, if not a business day), beginning on September
18, 2020. The Call Settlement Date for the final Call Date will be the maturity date.

Payment at Maturity:
If the notes are not automatically redeemed, the payment at maturity for the notes is based on the
performance of the Underlying Assets. You will receive $1,000 for each $1,000 in principal amount of
the note, unless (a) a Trigger Event has occurred with respect to any Underlying Asset and (b) the
Final Level of any Underlying Asset is less than its Initial Level.

However, holders of the notes are subject to potential loss of principal at maturity. If a Trigger Event
has occurred with respect to any Underlying Asset, and if the Final Level of any Underlying Asset is
less than its Initial Level, you will receive at maturity, for each $1,000 in principal amount of your
notes, a cash amount equal to:

$1,000 + [$1,000 x (Percentage Change of the Lesser Performing Underlying Asset)]

This amount will be less than the principal amount of your notes, and may be zero.

You will also receive the final interest payment at maturity, if payable.

Trigger Event:
A Trigger Event will be deemed to occur with respect to an Underlying Asset if its Closing Level is
less than its Trigger Level on any trading day during the Monitoring Period.

Monitoring Period:
The period from the Pricing Date to and including the Valuation Date.
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Lesser Performing
The Underlying Asset that has the lowest Percentage Change.
Underlying Asset:

Percentage Changes:
With respect to each Underlying Asset,

Final Level - Initial Level
, expressed as a percentage
Initial Level

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Initial Levels:
With respect to each Underlying Asset, its Closing Level on the Pricing Date, as set forth on the cover
page of this pricing supplement. The Initial Levels for the EEM and GDX are subject to adjustments in
certain circumstances. See "General Terms of the Notes -- Anti-Dilution Adjustments to an
Underlying Asset that Is an ETF" in the product supplement for additional information about these
adjustments.

Call Levels:
With respect to each Underlying Asset, 100% of its Initial Level.

Final Levels:
With respect to each Underlying Asset, its Closing Level on the Valuation Date.

Coupon Barrier Levels:
With respect to each Underlying Asset, 65% of its Initial Level, as set forth on the cover page of this
pricing supplement.

Trigger Levels:
With respect to each Underlying Asset, 65% of its Initial Level, as set forth on the cover page of this
pricing supplement.

Pricing Date:
March 13, 2020

Settlement Date:
March 18, 2020

Valuation Date:
June 15, 2021

Maturity Date:
June 18, 2021

Calculation Agent:
BMOCM

Selling Agent:
BMOCM

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Additional Terms of the Notes

You should read this pricing supplement together with the product supplement dated May 1, 2017, the prospectus supplement
dated September 23, 2018 and the prospectus dated April 27, 2017. This pricing supplement, together with the documents listed below,
contains the terms of the notes and supersedes all other prior or contemporaneous oral statements as well as any other written materials
including preliminary or indicative pricing terms, correspondence, trade ideas, structures for implementation, sample structures, fact
sheets, brochures or other educational materials of ours or the agent. You should carefully consider, among other things, the matters set
forth in "Additional Risk Factors Relating to the Notes" in the product supplement, as the notes involve risks not associated with
conventional debt securities. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the
notes.

You may access these documents on the SEC website at www.sec.gov as follows (or if such address has changed, by
reviewing our filings for the relevant date on the SEC website):

·
Product supplement dated May 1, 2017:
https://www.sec.gov/Archives/edgar/data/927971/000121465917002863/p427170424b5.htm

·
Prospectus supplement dated September 23, 2018:
https://www.sec.gov/Archives/edgar/data/927971/000119312518280416/d624491d424b5.htm

·
Prospectus dated April 27, 2017:
https://www.sec.gov/Archives/edgar/data/927971/000119312517142728/d254784d424b2.htm

Please note that references in the product supplement to the prospectus supplement will be deemed to refer to the prospectus
supplement dated September 23, 2018.

Our Central Index Key, or CIK, on the SEC website is 927971. As used in this pricing supplement, "we," "us" or "our" refers
to Bank of Montreal.

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Selected Risk Considerations

An investment in the notes involves significant risks. Investing in the notes is not equivalent to investing directly in the Underlying
Assets or their components. These risks are explained in more detail in the "Additional Risk Factors Relating to the Notes" section of
the product supplement.

·
Your investment in the notes may result in a loss. -- The notes do not guarantee any return of principal. If the notes are not
automatically redeemed, the payment at maturity will be based on whether a Trigger Event has occurred with respect to any
Underlying Asset, and whether the Final Level of any Underlying Asset is less than its Initial Level. If a Trigger Event has
occurred with respect to any Underlying Asset, and if the Final Level of any Underlying Asset is less than its Initial Level,
you will be subject to a one-for-one loss of the principal amount of the notes for any Percentage Change of the Lesser
Performing Underlying Asset from its Initial Level. In such a case, you will receive at maturity a cash payment that is less
than the principal amount of the notes and may be zero. Accordingly, you could lose up to the entire principal amount of
your notes.

·
You may not receive any conditional interest payments with respect to your notes. -- If the Closing Level of any
Underlying Asset is less than or equal to its respective Coupon Barrier Level as of the applicable monthly Observation Date,
you will not receive a monthly interest payment on the applicable interest payment date. You may not receive any interest
payments during the term of the notes.

·
The protection provided by the Trigger Level of an Underlying Asset may terminate on any day during the Monitoring
Period. -- If the Closing Level of any Underlying Asset on any trading day during the Monitoring Period is less than its
Trigger Level and the Final Level of any Underlying Asset is less than its Initial Level, you will be fully exposed at maturity
to any decrease in the value of the Lesser Performing Underlying Asset. Under these circumstances, if the Percentage Change
of the Lesser Performing Underlying Asset on the Valuation Date is less than zero, you will lose 1% (or a fraction thereof) of
the principal amount of your investment for every 1% (or a fraction thereof) that the Final Level of the Lesser Performing
Underlying Asset is less than its Initial Level. You will be subject to this potential loss of principal even if, after the Trigger
Event occurs with respect to any Underlying Asset, the value of each Underlying Asset increases above its Trigger Level.

·
Your notes are subject to automatic early redemption. -- We will redeem the notes if the Closing Level of each
Underlying Asset on any Call Date specified above is greater than its Call Level. Following an automatic redemption, you will
not receive any additional conditional interest payments on the notes, and you may not be able to reinvest your proceeds in an
investment with returns that are comparable to the notes.

·
Your return on the notes is limited to the conditional interest payments, regardless of any appreciation in the value of
any Underlying Asset. -- You will not receive a payment at maturity with a value greater than your principal amount plus the
final interest payment, if payable. In addition, if the notes are automatically called, you will not receive a payment greater than
the principal amount plus the applicable conditional interest payment, even if the Final Level of an Underlying Asset exceeds
its Call Level by a substantial amount. Accordingly, your maximum return for each $1,000 in principal amount of the notes is
equal to the potential monthly interest payments over the term of the notes.

·
Your investment is subject to the credit risk of Bank of Montreal. -- Our credit ratings and credit spreads may adversely
affect the market value of the notes. Investors are dependent on our ability to pay any amounts due on the notes, and therefore
investors are subject to our credit risk and to changes in the market's view of our creditworthiness. Any decline in our credit
ratings or increase in the credit spreads charged by the market for taking our credit risk is likely to adversely affect the value
of the notes.

·
Whether interest is payable on the notes, and your payment at maturity may be determined solely by reference to the
Lesser Performing Underlying Asset, even if the other Underlying Assets perform better. -- We will only make each
interest payment on the notes if the Closing Level of each of the Underlying Assets on the applicable Observation Date
exceeds the applicable Coupon Barrier Level, even if the values of the other Underlying Assets have increased significantly.
Similarly, if a Trigger Event occurs with respect to any Underlying Asset and the Final Level of any Underlying Asset is less
than its Initial Level, your payment at maturity will be determined by reference to the performance of the Lesser Performing
Underlying Asset. Even if the other Underlying Assets have appreciated in value compared to its Initial Level, or has
experienced a decline that is less than that of the Lesser Performing Underlying Asset, your return at maturity will only be
determined by reference to the performance of the Lesser Performing Underlying Asset if a Trigger Event occurs.

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·
The payments on the notes will be determined by reference to each Underlying Asset individually, not to a basket, and
the payments on the notes will be based on the performance of the Lesser Performing Underlying Asset. -- Whether
each interest payment is payable, and the payment at maturity if a Trigger Event occurs, will be determined only by reference
to the performance of the Lesser Performing Underlying Asset, regardless of the performance of the other Underlying Assets.
The notes are not linked to a weighted basket, in which the risk may be mitigated and diversified among each of the basket
components. For example, in the case of notes linked to a weighted basket, the return would depend on the weighted
aggregate performance of the basket components reflected as the basket return. As a result, the depreciation of one basket
component could be mitigated by the appreciation of the other basket components, as scaled by the weighting of that basket
component. However, in the case of the notes, the individual performance of each Underlying Asset would not be combined,
and the depreciation of one Underlying Asset would not be mitigated by any appreciation of the other Underlying Assets.
Instead, your receipt of interest payments on the notes will depend on the value of each Underlying Asset on each Observation
Date, and your return at maturity will depend solely on the Final Level of the Lesser Performing Underlying Asset if a Trigger
Event occurs.

·
Potential conflicts. -- We and our affiliates play a variety of roles in connection with the issuance of the notes, including
acting as calculation agent. In performing these duties, the economic interests of the calculation agent and other affiliates of
ours are potentially adverse to your interests as an investor in the notes. We or one or more of our affiliates may also engage in
trading of shares of the Underlying Assets that are ETFs or the securities represented or held by the Underlying Assets on a
regular basis as part of our general broker-dealer and other businesses, for proprietary accounts, for other accounts under
management or to facilitate transactions for our customers. Any of these activities could adversely affect the value of an
Underlying Asset and, therefore, the market value of the notes. We or one or more of our affiliates may also issue or
underwrite other securities or financial or derivative instruments with returns linked or related to changes in the performance
of the Underlying Assets. By introducing competing products into the marketplace in this manner, we or one or more of our
affiliates could adversely affect the market value of the notes.

·
Our initial estimated value of the notes is lower than the price to public. -- Our initial estimated value of the notes is only
an estimate, and is based on a number of factors. The price to public of the notes exceeds our initial estimated value, because
costs associated with offering, structuring and hedging the notes are included in the price to public, but are not included in the
estimated value. These costs include the underwriting discount and selling concessions, the profits that we and our affiliates
expect to realize for assuming the risks in hedging our obligations under the notes and the estimated cost of hedging these
obligations.

·
Our initial estimated value does not represent any future value of the notes, and may also differ from the estimated
value of any other party. -- Our initial estimated value of the notes as of the date of this pricing supplement was derived
using our internal pricing models. This value is based on market conditions and other relevant factors, which include volatility
of the Underlying Assets, dividend rates and interest rates. Different pricing models and assumptions could provide values for
the notes that are greater than or less than our initial estimated value. In addition, market conditions and other relevant factors
after the Pricing Date are expected to change, possibly rapidly, and our assumptions may prove to be incorrect. After the
Pricing Date, the value of the notes could change dramatically due to changes in market conditions, our creditworthiness, and
the other factors set forth in this pricing supplement and the product supplement. These changes are likely to impact the price,
if any, at which we or BMOCM would be willing to purchase the notes from you in any secondary market transactions. Our
initial estimated value does not represent a minimum price at which we or our affiliates would be willing to buy your notes in
any secondary market at any time.

·
The terms of the notes were not determined by reference to the credit spreads for our conventional fixed-rate debt. --
To determine the terms of the notes, we used an internal funding rate that represents a discount from the credit spreads for our
conventional fixed-rate debt. As a result, the terms of the notes are less favorable to you than if we had used a higher funding
rate.

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·
Certain costs are likely to adversely affect the value of the notes. -- Absent any changes in market conditions, any
secondary market prices of the notes will likely be lower than the price to public. This is because any secondary market prices
will likely take into account our then-current market credit spreads, and because any secondary market prices are likely to
exclude all or a portion of the agent's commission and the hedging profits and estimated hedging costs that are included in the
price to public of the notes and that may be reflected on your account statements. In addition, any such price is also likely to
reflect a discount to account for costs associated with establishing or unwinding any related hedge transaction, such as dealer
discounts, mark-ups and other transaction costs. As a result, the price, if any, at which BMOCM or any other party may be
willing to purchase the notes from you in secondary market transactions, if at all, will likely be lower than the price to public.
Any sale that you make prior to the maturity date could result in a substantial loss to you.

·
Owning the notes is not the same as owning the Underlying Assets or their components or a security directly linked to
the performance of the Underlying Assets or their components. -- The return on your notes will not reflect the return you
would realize if you actually owned the Underlying Assets or their components or a security directly linked to the
performance of the Underlying Assets or their components and held that investment for a similar period. Your notes may trade
quite differently from the Underlying Assets. Changes in the value of an Underlying Asset may not result in comparable
changes in the market value of your notes. Even if the value of an Underlying Asset increases from its Initial Level during the
term of the notes, the market value of the notes prior to maturity may not increase to the same extent. It is also possible for the
market value of the notes prior to maturity to decrease while the value of an Underlying Asset increases. In addition, any
dividends or other distributions paid on the applicable Underlying Asset will not be reflected in the amount payable on the
notes. The return on the notes may be less than the return on an investment in the applicable Underlying Asset.

·
You will not have any shareholder rights and will have no right to receive any securities represented by the Underlying
Assets at maturity. -- Investing in your notes will not make you a holder of any securities represented by the Underlying
Assets. Neither you nor any other holder or owner of the notes will have any voting rights, any right to receive dividends or
other distributions or any other rights with respect to these securities.

·
Adjustments to the Underlying Assets could adversely affect the value of the notes. -- Standard & Poor's, the sponsor of
the SPX, FTSE Russell, the sponsor of the RTY (each, an "Index Sponsor"), BlackRock, Inc. (collectively with its affiliates,
"BlackRock"), as the sponsor and advisor of the EEM, and VanEck Associates, the investment advisor of the GDX, may add,
delete or substitute the stocks represented or held by the Underlying Assets, or make other methodological changes. Further,
these Index Sponsors and these investment advisors may discontinue or suspend calculation or publication of these indices or
discontinue or suspend maintenance of these ETFs at any time, as applicable. Any of these actions could affect the value of
and the return on the notes.

·
We have no affiliation with either Index Sponsor (or the underlying index for any ETF) or the sponsor or investment
advisor of any ETF and will not be responsible for any actions taken by them. -- The sponsors of these indices and the
sponsors or investment advisors of these ETFs are not our affiliates, and will not be involved in the offering of the notes in
any way. Consequently, we have no control over the actions of these sponsors or the sponsors or investment advisors of the
ETFs, including any actions of the type that would require the calculation agent to adjust the payments on the notes. None of
these index sponsors or the sponsors or investment advisors of the ETFs has any obligation of any sort with respect to the
notes. Thus, none of these index sponsors or the sponsors or investment advisors of the ETFs has any obligation to take your
interests into consideration for any reason, including in taking any actions that might affect the value of the notes. None of our
proceeds from the issuance of the notes will be delivered to either Index Sponsor or the sponsor or investment advisor of
either ETF.

·
The performance of each ETF may not correlate with the performance of its underlying index as well as the net asset
value per share of that ETF. -- The performance of an ETF is linked principally to the performance of its underlying index
and the net asset value per share of that ETF. However, because of the potential discrepancies identified in more detail in the
product supplement, the return on an ETF may correlate imperfectly with the return on its underlying index or its net asset
value per share.

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