Chicago, Oct. 26 – Bank of Montreal priced $1.92 million of autocallable barrier notes with contingent coupons due July 23, 2026 linked to an equally-weighted basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of Delta Air Lines, Inc., United Airlines Holdings, Inc., Southwest Airlines Co. and American Airlines, Inc.
The notes will pay a monthly coupon equal to 11.4% per year if the basket’s closing level is at least 60% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if the basket closes at or above its initial level on any monthly observation date after six months.
If the notes are not called and the basket finishes at or above its 60% trigger level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will receive a number of shares of each basket component equal to the product of its weighting and $1,000, divided by the component’s initial level. The issuer may opt to pay the cash equivalent of any component’s physical delivery amount.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupons
|
| Underlying basket: | Delta Air Lines, Inc., United Airlines Holdings, Inc., Southwest Airlines Co., American Airlines, Inc.; equal weights
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| Amount: | $1,921,000
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| Maturity: | July 23, 2026
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| Coupon: | 11.4% per year, payable monthly if the basket’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 basket finishes at or above trigger level; otherwise, receive a number of shares of each basket component equal to the product of its weighting and $1,000, divided by the component’s initial level; issuer may opt to pay the cash equivalent for any basket component’s physical delivery amount
|
| Call: | At par plus contingent coupon if the basket closes at or above initial level on any monthly observation date after six months
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| Initial levels: | $33.14 for Delta, $36.24 for United, $24.70 for Southwest, $11.36 for American
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| Coupon barrier level: | 60% of initial levels
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| Trigger level: | 60% of initial levels
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| Pricing date: | Oct. 18
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| Settlement date: | Oct. 23
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3.25%
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| Cusip: | 06369NMX6
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