Published on 2/5/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $4.68 million autocallable barrier notes with contingent coupon on indexes, ETF
By Taylor Fox
New York, Feb. 5 – Bank of Montreal priced $4.68 million of autocallable barrier notes with contingent coupons due April 4, 2022 linked to the VanEck Vectors Gold Miners ETF, the Nasdaq 100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 13.75% per year if each asset’s closing level is at least 65% of the initial level on the observation date for that month.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes above its initial level on any monthly observation date beginning June 30, 2021.
If the notes are not called, the payout at maturity will be par unless any asset closes at less than its 60% trigger level during the life of the notes and any asset finishes below its initial level, in which case investors will lose 1% for each 1% decline based on the final level from the initial level of the least performing asset.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupons
|
| Underlying assets: | VanEck Vectors Gold Miners ETF, Nasdaq 100 index and Russell 2000 index
|
| Amount: | $4,677,000
|
| Maturity: | April 4, 2022
|
| Coupon: | 13.75% per year, payable monthly if each asset’s closing level is at or above coupon barrier level on the observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless the final level of any asset closes below the trigger level on any day during the life of the notes and at least one asset closes below its initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset
|
| Call: | At par plus contingent coupon if assets close at or above initial levels on any monthly observation date beginning June 30, 2021
|
| Initial levels: | $36.56 for ETF, 12,845.36 for Nasdaq, 1,979.992 for Russell
|
| Coupon barrier levels: | $23.76 for ETF, 8,349.48 for Nasdaq, 1,286.995 for Russell, 65% of initial levels
|
| Trigger levels: | $21.94 for ETF, 7,707.22 for Nasdaq, 1,187.995 for Russell, 60% of initial levels
|
| Pricing date: | Dec. 30
|
| Settlement date: | Jan. 4
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.25%
|
| Cusip: | 06368EBS0
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