Published on 12/11/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $859,000 autocallable barrier notes with contingent coupon on indexes
By Kiku Steinfeld
Chicago, Dec. 13 – Bank of Montreal priced $859,000 of autocallable barrier notes with contingent coupons due Nov. 29, 2024 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.
The notes will pay a monthly coupon equal to 6.5% per year if each index’s closing level is at least 75% 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 at or above its initial level on any monthly observation date after six months.
If the notes are not called, the payout at maturity will be par if each index’s final level is greater than or equal to the 75% trigger level. Otherwise, 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
|
| Issue: | Autocallable barrier notes with contingent coupons
|
| Underlying indexes: | S&P 500 index, Dow Jones industrial average, Russell 2000 index
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| Amount: | $859,000
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| Maturity: | Nov. 29, 2024
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| Coupon: | 6.5% per year, payable monthly if each index’s closing level is at or above its coupon barrier level on the corresponding observation date
|
| Price: | Par
|
| Payout at maturity: | Par if all indexes finish at or above trigger level; otherwise, investors will lose 1% for each 1% decline of the least-performing index from its initial level
|
| Call: | At par plus contingent coupon if indexes close at or above initial levels on any monthly observation date after six months
|
| Initial levels: | 4,690.70 for S&P, 35,813.80 for Dow, 2,327.855 for Russell
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| Coupon barrier levels: | 3,518.03 for S&P, 26,860.3 for Dow, 1,745.891 for Russell; 75% of initial levels
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| Trigger levels: | 3,518.03 for S&P, 26,860.3 for Dow, 1,745.891 for Russell; 75% of initial levels
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| Pricing date: | Nov. 23
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| Settlement date: | Nov. 30
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 1.6%
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| Cusip: | 06368G3R6
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