Published on 6/6/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $949,000 autocallable barrier notes with contingent coupons on Nasdaq, Russell
By William Gullotti
Buffalo, N.Y., June 7 – Bank of Montreal priced $949,000 of autocallable barrier notes with contingent coupons due May 15, 2028 linked to the least performing of the Nasdaq-100 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 6% per year if each index’s closing level is at least 70% of its initial level on the observation date for that quarter.
The notes will be automatically redeemed at par plus the contingent coupon if each asset closes above its initial level on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par unless any asset finishes below its 60% trigger 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 indexes: | Nasdaq 100 index and Russell 2000 index
|
| Amount: | $949,000
|
| Maturity: | May 15, 2028
|
| Coupon: | 6% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any index finishes below its trigger level, in which case investors will lose 1% for each 1% decline from the initial level of the least-performing index
|
| Call: | At par plus contingent coupon if indexes close above initial levels on any quarterly observation date after six months
|
| Initial levels: | 13,001.63 for Nasdaq, 2,135.139 for Russell
|
| Coupon barrier levels: | 9,101.14 for Nasdaq, 1,494.597 for Russell; 70% of initial levels
|
| Trigger levels: | 7,800.98 for Nasdaq, 1,281.083 for Russell; 60% of initial levels
|
| Pricing date: | May 12
|
| Settlement date: | May 14
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.6%
|
| Cusip: | 06368EL83
|
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