Published on 12/15/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.65 million callable barrier notes with memory coupon on three indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 15 – Bank of Montreal priced $1.65 million of callable barrier notes with memory coupons due Dec. 9, 2027 linked to the Euro Stoxx 50 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 quarterly coupon equal to 7.64% 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 on any quarterly observation date.
If the notes are not called, the payout at maturity will be par if each index finishes at or above its 50% 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: | Euro Stoxx 50 index, S&P 500 index, Dow Jones industrial average
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| Amount: | $1.65 million
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| Maturity: | Dec. 9, 2027
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| Coupon: | 7.64% per year, payable quarterly 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 quarterly observation date
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| Initial levels: | 4,137.11 for Stoxx, 4,591.67 for S&P, 35,227.03 for Dow
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| Coupon barrier levels: | 3,673.34 for Stoxx, 3,309.69 for S&P, 28,181.62 for Dow; 80% of initial levels
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| Trigger levels: | 2,295.84 for Stoxx, 2,068.56 for S&P, 17,613.52 for Dow; 50% of initial levels
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| Pricing date: | Dec. 6
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| Settlement date: | Dec. 9
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06368GAV9
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