Published on 7/1/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $4.33 million autocallable barrier notes with contingent coupon on three indexes
By William Gullotti
Buffalo, N.Y., July 1 – Bank of Montreal priced $4.33 million of autocallable barrier notes with contingent coupons due June 26, 2023 linked to the Dow Jones industrial average, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon equal to 8.25% per year if each index’s closing level is at least 70% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if each index closes above its initial level on any quarterly observation date.
If the notes are not called, the payout at maturity will be par plus the final coupon unless any index finishes below its 70% 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 index.
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 indexes: | Dow Jones industrial average, S&P 500 index, Russell 2000 index
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| Amount: | $4,325,000
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| Maturity: | June 26, 2023
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| Coupon: | 8.25% 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
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| Payout at maturity: | Par plus the final coupon 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
|
| Initial levels: | 33,876.97 for Dow, 4,224.79 for S&P, 2,286.093 for Russell
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| Coupon barrier levels: | 23,713.88 for Dow, 2,957.35 for S&P, 1,600.265 for Russell; 70% of initial levels
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| Trigger levels: | 23,713.88 for Dow, 2,957.35 for S&P, 1,600.265 for Russell; 70% of initial levels
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| Pricing date: | June 21
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| Settlement date: | June 24
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06368EQH8
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