Published on 2/14/2023 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.08 million callable barrier notes with contingent coupon on three indexes
Chicago, Feb. 14 – Bank of Montreal priced $1.08 million of callable barrier notes with contingent coupons due May 4, 2027 linked to the least performing of the Dow Jones industrial average, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 9.1% per year if each index’s closing level is at least 70% of its initial level on the relevant observation date.
The notes are callable at par on any quarterly 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 contingent coupons
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Underlying indexes: | Dow Jones industrial average, Russell 2000 index, S&P 500 index
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Amount: | $1,080,000
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Maturity: | May 4, 2027
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Coupon: | 9.1% 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: | Par if each index finishes at or above its trigger level; 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 quarterly observation date after six months
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Initial levels: | 32,977.21 for Dow, 1,864.103 for Russell, 4,131.93 for S&P
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Coupon barrier levels: | 23,084.05 for Dow, 1,304.872 for Russell, 2,892.35 for S&P; 70% of initial levels
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Trigger levels: | 19,786.33 for Dow, 1,118.462 for Russell, 2,479.16 for S&P; 60% of initial levels
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Pricing date: | April 29, 2022
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Settlement date: | May 4, 2022
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.25%
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Cusip: | 06368GR90
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