Published on 10/13/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $8.98 million callable barrier notes with contingent coupon on three indexes
By Wendy Van Sickle
Columbus, Ohio, Oct. 13 – Bank of Montreal priced $8.98 million of callable barrier notes with contingent coupons due Oct. 5, 2027 linked to the S&P 500 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon equal to 6% per year if each index’s closing level is at least 60% 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 its 60% trigger level. 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: | S&P 500 index, Dow Jones industrial average, Russell 2000 index
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| Amount: | $8,975,000
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| Maturity: | Oct. 5, 2027
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| Coupon: | 6% 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 trigger levels, par plus final coupon; 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: | 4,307.54 for S&P, 33,843.92 for Dow, 2,204.372 for Russell
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| Coupon barrier levels: | 2,584.52 for S&P, 20,306.35 for Dow, 1,322.623 for Russell; 60% of initial levels
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| Trigger levels: | 2,584.52 for S&P, 20,306.35 for Dow, 1,322.623 for Russell; 60% of initial levels
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| Pricing date: | Sept. 30
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| Settlement date: | Oct. 5
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06368EWP3
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