Published on 3/19/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $719,000 autocallable barrier notes with contingent coupon on Stoxx, Russell
By Wendy Van Sickle
Columbus, Ohio, March 19 – Bank of Montreal priced $719,000 of autocallable barrier notes with contingent coupons due Feb. 28, 2028 linked to the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every quarter, the notes will pay a coupon equal to 7% per year if each asset’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 index closes above its initial level on any observation date beginning in August.
If the notes are not called, the payout at maturity will be par unless the final level of either asset is less than 75% of the initial level, in which case investors will lose 1% for each 1% decline from the initial level of the least performing asset.
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 assets: | Euro Stoxx 50 index and Russell 2000 index
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| Amount: | $719,000
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| Maturity: | Feb. 28, 2028
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| Coupon: | 7% per year, payable quarterly if each asset’s closing level is at least 75% of the initial level 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 asset is less than 75% of the 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 observation date beginning in August
|
| Initial levels: | 2,284.31 for Russell, 3,705.99 for Stoxx
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| Coupon barrier levels: | 1,713.286 for Russell, 2,799.49 for Stoxx, 75% of initial levels
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| Trigger levels: | 1,713.286 for Russell, 2,799.49 for Stoxx, 75% of initial levels
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| Pricing date: | Feb. 24
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| Settlement date: | Feb. 26
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3%
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| Cusip: | 06368EEX6
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