Published on 6/7/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.36 million callable barrier notes with contingent coupon on three indexes
By Kiku Steinfeld
Chicago, June 7 – Bank of Montreal priced $1.36 million of callable barrier notes with contingent coupons due Nov. 23, 2026 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 7.3% per year if each index’s closing level is at least 65% of its initial level on the relevant observation date.
The notes will be callable at par on any quarterly observation date.
If the notes are not called and each index finishes at or above its 60% trigger level, the payout at maturity will be par plus the final coupon, if any.
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 contingent coupons
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index, Dow Jones industrial average
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| Amount: | $1,357,000
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| Maturity: | Nov. 23, 2026
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| Coupon: | 7.3% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the relevant observation date
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| Price: | Par
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| Payout at maturity: | If all indexes finish at or above trigger level, par plus final coupon, if any; otherwise, lose 1% for every 1% decline of the worst performer from its initial level
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| Call option: | At par plus any coupon due on any quarterly observation date
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| Initial levels: | 16,308.07 for Nasdaq, 2,377.008 for Russell, 35,931.05 for Dow
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| Coupon barrier levels: | 10,600.25 for Nasdaq, 1,545.055 for Russell, 23,355.18 for Dow; 65% of initial levels
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| Trigger levels: | 9,784.84 for Nasdaq, 1,426.205 for Russell, 21,558.63 for Dow; 60% of initial levels
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| Pricing date: | Nov. 17, 2021
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| Settlement date: | Nov. 22, 2021
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.55%
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| Cusip: | 06368G4Y0
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