Published on 10/22/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $84,000 autocallable notes with contingent coupon on ETFs
By Kiku Steinfeld
Chicago, Oct. 24 – Bank of Montreal priced $84,000 of autocallable barrier notes with contingent coupons due May 31, 2024 linked to the SPDR S&P Oil & Gas Exploration & Production ETF and the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Every quarter, the notes will pay a coupon equal to 10% per year if each ETF’s closing level is at least 60% of the initial level on the observation date for that quarter.
The notes will be automatically redeemed at par plus the contingent coupon if each ETF closes above its initial level on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par unless the final level of either ETF is less than 60% of the initial level, in which case investors will lose 1% for each 1% decline of the least performing ETF, payable in shares of that ETF or cash at the option of the issuer.
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 ETFs: | SPDR S&P Oil & Gas Exploration & Production ETF and the Energy Select Sector SPDR Fund
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| Amount: | $84,000
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| Maturity: | May 31, 2024
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| Coupon: | 10% per year, payable monthly if each ETF’s closing level is at least 60% of the initial level on the observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless the final level of either ETF is less than 60% of the initial level, in which case investors will lose 1% for each 1% decline of the least performing ETF, payable in shares of that ETF or cash at the option of the issuer
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| Call: | At par plus contingent coupon if ETFs close at or above initial levels on any quarterly observation date after six months
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| Initial levels: | $67.64 for Energy, $108.1 for Oil & Gas
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| Coupon barrier levels: | $40.58 for Energy, $64.87 for Oil & Gas, 60% of initial levels
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| Trigger levels: | $40.58 for Energy, $64.87 for Oil & Gas, 60% of initial levels
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| Pricing date: | Feb. 23, 2022
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| Settlement date: | Feb. 28, 2022
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3.1%
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| Cusip: | 06369NAN1
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