BMO plans contingent 9.8% cash-settled autocalls tied to index, ETF

By Wendy Van Sickle

Columbus, Ohio, May 18 – Bank of Montreal plans to price autocallable cash-settled notes with contingent interest payments due June 30, 2021 linked to the lesser performing of the Nasdaq 100 index and the SPDR Dow Jones industrial average ETF, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 9.8% if each asset closes at or above its 75% coupon barrier level on the observation date for that month.

The notes will be called at par if each asset closes at or above its initial level on any review date after six months.

The payout at maturity will be par unless either asset finishes below its 75% trigger level, in which case investors be fully exposed to any losses of the worse performing asset.

BMO Capital Markets Corp. is the agent.

The notes will price on May 28.

The Cusip is 06367WK51.

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