Published on 12/12/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $136,000 callable barrier notes with contingent coupon on Nasdaq, Stoxx Banks
By Kiku Steinfeld
Chicago, Dec. 12 – Bank of Montreal priced $136,000 of callable barrier notes with contingent coupons due April 19, 2029 linked to the least performing of the Nasdaq-100 index and the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon equal to 10% per year if each index’s closing level is at least 65% of its initial level on the relevant observation date.
The notes will be callable on any monthly observation date after three months.
If the notes are not called, the payout at maturity will be par plus the final coupon if each index finishes at or above coupon barrier.
If the worst performer finishes below the coupon barrier but at or above its 60% 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: | Callable barrier notes with contingent coupons
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Underlying indexes: | Nasdaq-100 index, Euro Stoxx Banks index
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Amount: | $136,000
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Maturity: | April 19, 2029
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Coupon: | 10% 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: | If all indexes finish above coupon barrier, par plus final coupon; if the worst performer finishes below coupon barrier but at or 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 plus any coupon due on any monthly observation date after three months
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Initial levels: | 14,217.29 for Nasdaq, 87.90 for Stoxx Banks
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Coupon barrier levels: | 9,241.24 for Nasdaq, 57.14 for Stoxx Banks; 65% of initial levels
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Trigger levels: | 8,530.37 for Nasdaq, 52.74 for Stoxx Banks; 60% of initial levels
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Pricing date: | April 13, 2022
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Settlement date: | April 19, 2022
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Agent: | BMO Capital Markets Corp.
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Fees: | 4.75%
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Cusip: | 06368GPF8
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