Published on 1/20/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $813,000 autocallable barrier notes with contingent coupons on Stoxx Banks, Russell
By Wendy Van Sickle
Columbus, Ohio, Jan. 20 – Bank of Montreal priced $813,000 of autocallable barrier notes with contingent coupons due Sept. 1, 2026 linked to the Euro Stoxx Banks index and the Russell 2000 index, 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 75% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes at or above its initial level on any monthly observation date after one year.
If the notes are not called and each index finishes at or above its 75% trigger level, the payout at maturity will be par. 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: | Autocallable barrier notes with contingent coupons
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Underlying indexes: | Euro Stoxx Banks index, Russell 2000 index
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Amount: | $813,000
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Maturity: | Sept. 1, 2026
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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
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Price: | Par
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Payout at maturity: | Par plus the final coupon if all indexes finish at or above coupon barrier; if worst performer finishes below its coupon barrier but at or above trigger level, par; otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level
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Call: | At par plus contingent coupon if indexes close at or above initial levels on any monthly observation date after one year
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Initial levels: | 96.86 for Stoxx 2,277.151 for Russell
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Coupon barrier levels: | 72.65 for Stoxx, 1,707.863 for Russell; 75% of initial levels
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Trigger levels: | 72.65 for Stoxx, 1,707.863 for Russell; 75% of initial levels
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Pricing date: | Aug. 27
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Settlement date: | Sept. 1
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Agent: | BMO Capital Markets Corp.
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Fees: | 4.1%
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Cusip: | 06368EVJ8
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