Published on 11/6/2020 in the Prospect News Structured Products Daily.
New Issue: BMO sells $2.48 million autocallable barrier notes with step-up call amount on indexes
By Wendy Van Sickle
Columbus, Ohio, Nov. 6 – Bank of Montreal priced $2.48 million of 0% autocallable barrier notes with step-up call amount due Oct. 31, 2025 linked to the least performing of the S&P 500 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
After six months, the notes will be called at par plus a call premium if each index closes at or above its initial level on the any quarterly observation date. The premium is 8.25% per year.
If the notes are not called, meaning the final levels of at least one of the indexes has declined below its initial level, the payout will be par unless any index has finished below its 60% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing index from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable barrier notes with step-up call amount
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| Underlying indexes: | S&P 500 index, Dow Jones industrial average and Russell 2000 index
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| Amount: | $2.48 million
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| Maturity: | Oct. 31, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If not called because at least one index has closed below initial level, par unless any index has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
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| Call: | At par plus a call premium if each index closes at or of its initial level on any quarterly observation date after six months; premium is 8.25% per year
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| Initial index levels: | 1,590.482 for Russell, 27,463.19 for Dow, 3,390.68 for S&P
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| Barrier levels: | 954.289 for Russell, 16,477.91 for Dow, 2,034.41 for S&P, 60% of initial levels
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| Pricing date: | Oct. 27
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| Settlement date: | Oct. 30
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3.75%
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| Cusip: | 06367W6W8
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