Published on 8/17/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $2.78 million autocallable barrier notes with contingent coupons on basket
By William Gullotti
Buffalo, N.Y., Aug. 17 – Bank of Montreal priced $2.78 million of autocallable barrier notes with contingent coupons due Feb. 18, 2025 linked to an equally-weighted basket of tech stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of Apple Inc., Amazon.com, Inc., Netflix, Inc., Nvidia Corp. and Microsoft Corp.
The notes will pay a monthly coupon equal to 13.7% per year if the basket’s closing level is at least 70% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if the basket closes at or above its initial level on any monthly observation date after six months.
If the notes are not called and the basket finishes at or above its 70% trigger level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% of basket decline 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 basket: | Apple Inc., Amazon.com, Inc., Nvidia Corp., Microsoft Corp., Netflix, Inc.; equal weights
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Amount: | $2,781,000
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Maturity: | Feb. 18, 2025
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Coupon: | 13.7% per year, payable monthly if the basket’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 final coupon if basket finishes at or above trigger level; otherwise, 1% loss for every 1% of basket decline from initial level
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Call: | At par plus contingent coupon if the basket closes at or above initial level on any monthly observation date after six months
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Initial levels: | $172.10 for Apple, $143.55 for Amazon, $187.09 for Nvidia, $291.91 for Microsoft, $249.30 for Netflix
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Coupon barrier level: | 70% of initial levels
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Trigger level: | 70% of initial levels
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Pricing date: | Aug. 12
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Settlement date: | Aug. 17
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.5%
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Cusip: | 06368GYC5
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