By William Gullotti
Buffalo, N.Y., March 11 – Bank of Montreal priced $10 million of callable barrier notes with contingent coupons due March 5, 2026 linked to the performance of the VanEck Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon equal to 11.55% per year if the ETF’s closing level is at least 70% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon otherwise due on any monthly observation date after one year.
If the notes are not called and the ETF finishes at or above 70% of initial level, the payout at maturity will be par plus the final coupon.
If the ETF declines by more than 30% but finishes at or above its 65% trigger level, the payout will be par. Otherwise, investors will lose 1% for each 1% of ETF decline from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Callable barrier notes with contingent coupons
|
| Underlying fund: | VanEck Gold Miners ETF
|
| Amount: | $10,004,000
|
| Maturity: | March 5, 2026
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| Coupon: | 11.55% per year, payable monthly if the ETF’s closing level is at or above its coupon barrier level on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon if ETF finishes at or above coupon barrier; if ETF finishes below coupon barrier but at or above trigger level, par; otherwise, lose 1% for each 1% of ETF decline from its initial level
|
| Call option: | At par plus any coupon due on any monthly observation date after one year
|
| Initial level: | $26.36
|
| Coupon barrier level: | $18.45; 70% of initial level
|
| Trigger level: | $17.13; 65% of initial level
|
| Pricing date: | Feb. 29
|
| Settlement date: | March 5
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.25%
|
| Cusip: | 06375MXF7
|
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