Published on 4/19/2024 in the Prospect News Structured Products Daily.
New Issue: BMO sells $2.63 million autocallable barrier notes with contingent coupons on indexes
By Wendy Van Sickle
Columbus, Ohio, April 19 – Bank of Montreal priced $2.63 million of autocallable barrier notes with contingent coupons due April 19, 2027 linked to the Dow Jones industrial average, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon equal to 8.1% per year if each index’s closing level is at least 70% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes at or above its initial level on any quarterly observation date after six months.
If the notes are not called and each index finishes at or above its 70% trigger level, the payout at maturity will be par plus the final coupon
Otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level.
BMO Capital Markets Corp. is the agent.
Issuer: | Bank of Montreal
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Issue: | Autocallable barrier notes with contingent coupons
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Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index, Russell 2000 index
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Amount: | $2,634,000
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Maturity: | April 19, 2027
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Coupon: | 8.1% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the relevant observation date
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Price: | Par
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Payout at maturity: | Par plus the final coupon if all indexes finish at or above trigger level; otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level
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Call: | At par plus contingent coupon if indexes close at or above initial levels on any quarterly observation date after six months
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Initial levels: | 37,735.11 for Dow, 17,706.83 for Nasdaq, 1,975.708 for Russell
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Coupon barrier levels: | 26,414.58 for Dow, 12,394.78 for Nasdaq, 1,382.996 for Russell; 70% of initial levels
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Trigger levels: | 26,414.58 for Dow, 12,394.78 for Nasdaq, 1,382.996 for Russell; 70% of initial levels
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Pricing date: | April 15
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Settlement date: | April 18
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Agent: | BMO Capital Markets Corp.
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Fees: | 2.5%
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Cusip: | 06376ABZ2
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