By Taylor Fox
New York, Nov. 16 – Bank of Montreal priced $2 million of autocallable barrier notes with contingent coupons due Oct. 21, 2022 linked to the common stocks of Ford Motor Co. and Wells Fargo & Co., according to a 424B2 filing with the Securities and Exchange Commission.
Every quarter, the notes will pay a coupon equal to 26% per year if each stock’s closing level is at least 75% of the initial level on the observation date for that quarter.
The notes will be automatically redeemed at par plus the contingent coupon if each stock closes above its initial level on any quarterly observation date.
If the notes are not called, the payout at maturity will be par unless the final level of either stock is less than 65% of the initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing stock.
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 stocks: | Ford Motor Co. and Wells Fargo & Co
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| Amount: | $2 million
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| Maturity: | Oct. 21, 2022
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| Coupon: | 26% per year, payable quarterly if each stock’s closing level is at or above coupon barrier on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless the final level of either stock is less than trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset
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| Call: | At par plus contingent coupon if stocks close at or above initial levels on any quarterly observation date
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| Initial levels: | $7.67 for Ford and $22.86 for Wells Fargo
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| Coupon barrier levels: | $5.75 for Ford and $17.14 for Wells Fargo, 75% of initial levels
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| Trigger levels: | $4.99 for Ford and $14.86 for Wells Fargo, 65% of initial levels
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| Pricing date: | Oct. 16
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| Settlement date: | Oct. 21
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.4%
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| Cusip: | 06368E2S0
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