Published on 5/25/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.07 million autocallable barrier notes with contingent coupons on two indexes
Chicago, May 25 – Bank of Montreal priced $1.07 million of autocallable barrier notes with contingent coupons due Nov. 3, 2026 linked to the least performing of the Russell 2000 index and the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 10.4% per year if each index’s closing level is at least 80% of its initial level on the observation date for that period.
The notes will be called at par on any monthly observation date starting after one year if each index closes at or above its initial level.
If the notes are not called, the payout at maturity will be par unless any index finishes below its 80% trigger level, in which case investors will lose 1% for each 1% decline based on the final level from the initial level of the least-performing index.
BMO Capital Markets Corp. is the selling agent.
Issuer: | Bank of Montreal
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Issue: | Autocallable barrier notes with contingent coupons
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Underlying indexes: | Russell 2000 index and Euro Stoxx Banks index
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Amount: | $1,069,000
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Maturity: | Nov. 3, 2026
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Coupon: | 10.4% per year, payable monthly if each index’s closing level is at or above its coupon barrier level on the observation date for that period
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Price: | Par
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Payout at maturity: | Par unless any index finishes below its trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least-performing index
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Call: | At par on any monthly observation date starting after one year if each index closes at or above its initial level
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Initial levels: | 2,297.191 for Russell, 102.68 for Stoxx Banks
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Coupon barrier levels: | 1,837.753 for Russell, 82.14 for Stoxx Banks; 80% of initial levels
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Trigger levels: | 1,837.753 for Russell, 82.14 for Stoxx Banks; 80% of initial levels
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Pricing date: | Oct. 29, 2021
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Settlement date: | Nov. 3, 2021
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Selling agent: | BMO Capital Markets Corp.
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Fees: | 4.1%
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Cusip: | 06368G2Y2
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