Published on 6/25/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $6.31 million autocallable barrier notes with contingent coupon on indexes
By William Gullotti
Buffalo, N.Y., June 25 – Bank of Montreal priced $6.31 million of autocallable barrier notes with contingent coupons due May 29, 2026 linked to the Dow Jones industrial average, the S&P 500 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 5% 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 above its initial level on any quarterly observation date beginning on Nov. 24.
If the notes are not called, the payout at maturity will be par unless any index finishes below its 65% trigger level, in which case investors will lose 1% for each 1% decline based on the final level from the initial level of the least-performing index.
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, Russell 2000 index, S&P 500 index
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| Amount: | $6,312,000
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| Maturity: | May 29, 2026
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| Coupon: | 5% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any index finishes below its trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least-performing index
|
| Call: | At par plus contingent coupon if indexes close above initial levels on any quarterly observation date beginning on Nov. 24
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| Initial levels: | 34,393.98 for Dow, 2,227.338 for Russell, 4,197.05 for S&P
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| Coupon barrier levels: | 24,075.79 for Dow, 1,559.137 for Russell, 2,937.94 for S&P; 70% of initial levels
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| Trigger levels: | 22,356.09 for Dow, 1,447.77 for Russell, 2,728.08 for S&P; 65% of initial levels
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| Pricing date: | May 24
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| Settlement date: | May 27
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 2.75%
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| Cusip: | 06368ELS9
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