Published on 1/7/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $40,000 digital plus return notes tied to S&P 500, Russell 2000
By Cady Vishniac
Detroit, Jan. 7 – Bank of Montreal priced $40,000 of 0% digital plus return notes due Dec. 29, 2023 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If each index finishes at or above its initial level, the payout at maturity will be par plus the gain of the lesser-performing index, capped at par plus 16.5%.
If each index finishes at or above its barrier level, 75% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every decline of the lesser-performing index below its initial level.
BMO Capital Markets Corp. is the underwriter.
Issuer: | Bank of Montreal
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Issue: | Digital plus return notes
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Underlying indexes: | S&P 500 and Russell 2000
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Amount: | $40,000
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Maturity: | Dec. 29, 2023
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Coupon: | 0%
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Price: | Par of $1,000
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Payout at maturity: | Par plus the gain of the lesser-performing index, capped at par plus 16.5%, if both indexes finish above their initial levels; if either index falls but not below its barrier level, par; if either index falls below its barrier level, 1% loss for each 1% decline of the lesser-performing index from its initial level
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Initial levels: | 3,735.36 for S&P and 1,996.25 for Russell
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Barrier levels: | 2,801.52 for S&P and 1,497.188 for Russell; 75% of initial levels
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Pricing date: | Dec. 28
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Settlement date: | Dec. 31
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.2%
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Cusip: | 06368E7K2
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