Published on 3/15/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.5 million callable barrier notes with memory coupon on three indexes
By Kiku Steinfeld
Chicago, March 15 – Bank of Montreal priced $1.5 million of callable barrier notes with memory coupons due Sept. 22, 2025 linked to the Russell 2000 index, the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 7.1% per year if each index’s closing level is at least 80% of its initial level on the relevant observation date, in which case any previously unpaid coupon will be paid.
The notes will be callable at par on any monthly observation date after six months.
If the notes are not called, the payout at maturity will be par if each index finishes at or above its 60% trigger level. Otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Callable barrier notes with memory coupons
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Dow Jones industrial average
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| Amount: | $1.5 million
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| Maturity: | Sept. 22, 2025
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| Coupon: | 7.1% per year, payable monthly if each index’s closing level is at or above its coupon barrier level on the relevant observation date, in which case any previously unpaid coupon will be paid
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| Price: | Par
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| Payout at maturity: | If all indexes finish above trigger level, par; otherwise, lose 1% for every 1% decline of the worst performer from its initial level
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| Call option: | At par on any monthly observation date after six months
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| Initial levels: | 2,236.871 for Russell, 4,432.99 for S&P, 34,584.88 for Dow
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| Coupon barrier levels: | 1,789.497 for Russell, 3,546.39 for S&P, 27,667.90 for Dow; 80% of initial levels
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| Trigger levels: | 1,342.123 for Russell, 2,659.79 for S&P, 20,750.93 for Dow; 60% of initial levels
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| Pricing date: | Sept. 17
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| Settlement date: | Sept. 22
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.05%
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| Cusip: | 06368EXP2
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