Published on 8/24/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $2.12 million autocallable barrier notes with contingent coupons on indexes
By Wendy Van Sickle
Columbus, Ohio, Aug. 24 – Bank of Montreal priced $2.12 million of autocallable barrier notes with contingent coupons due June 30, 2025 linked to the least performing of 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.
Every month, the notes will pay a coupon equal to 9.5% per year if each index’s closing level is at least 75% of the initial level on the observation date for that period.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes above its initial level on any monthly observation date.
If the notes are not called, the payout at maturity will be par unless the final level of any index is less than 70% of the initial level, in which case investors will lose 1% for each 1% decline 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, Nasdaq-100 index and Russell 2000 index
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| Amount: | $2.12 million
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| Maturity: | June 30, 2025
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| Coupon: | 9.5% per year, payable monthly if each index’s closing level is above coupon barrier level on the observation date for that period
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| Price: | Par
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| Payout at maturity: | Par unless the final level of any index is less than its trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing index
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| Call: | At par plus contingent coupon if indexes close at or above initial levels on any monthly observation date
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| Initial levels: | 34,196.82 for Dow, 14,365.96 for Nasdaq, 2,333.622 for Russell
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| Coupon barrier levels: | 25,647.62 for Dow, 10,774.47 for Nasdaq, 1,750.217 for Russell; 75% of initial levels
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| Trigger levels: | 23,937.77 for Dow, 10,056.17 for Nasdaq, 1,633.535 for Russell; 70% of initial levels
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| Pricing date: | June 24
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| Settlement date: | June 29
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06368EQT2
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