Published on 7/17/2020 in the Prospect News Structured Products Daily.
New Issue: BMO sells $14.19 million autocallable barrier notes with contingent coupon on S&P, Russell
By Sarah Lizee
Olympia, Wash., July 17 – Bank of Montreal priced $14.19 million of autocallable barrier notes with a contingent coupon due Oct. 20, 2021 linked to the S&P 500 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 9% per year if each index closes above its trigger level, 60% of its initial level, on the observation date that month.
The notes will be automatically redeemed at par plus the contingent coupon if each index close above its initial level on any monthly call date starting Jan. 14, 2021.
If the notes are not called, the payout at maturity will be par unless the final level of either index is less than the trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing index.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable barrier notes with contingent coupon
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| Underlying indexes: | S&P 500, Russell 2000
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| Amount: | $14,188,000
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| Maturity: | Oct. 20, 2021
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| Coupon: | 9% per year, payable monthly if each index closes above trigger level on observation date
|
| Price: | Par
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| Payout at maturity: | Par unless the final level of either index is less than the trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing index
|
| Call: | At par plus contingent coupon if indexes close at or above initial prices on any monthly call date starting Jan. 14, 2021
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| Initial prices: | 3,226.56 for S&P, 1,478.27 for Russell
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| Trigger prices: | 1,935.94 for S&P, 886.962 for Russell, 60% of initial prices
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| Pricing date: | July 15
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| Settlement date: | July 20
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.75%
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| Cusip: | 06367WW58
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