Published on 12/15/2021 in the Prospect News Structured Products Daily.
New Issue: BMO sells $4.04 million autocallable barrier notes with contingent coupon on indexes
By Wendy Van Sickle
Columbus, Ohio, Dec. 15 – Bank of Montreal priced $4.04 million of autocallable barrier notes with contingent coupons due Dec. 9, 2024 linked to the least performing of the Russell 2000 index the Dow Jones industrial average and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon equal to 10.25% per year if each index is greater than its respective 70% coupon barrier level on the related observation date.
The notes will be called at par plus the contingent coupon if each index closes above its initial level on any quarterly redemption date.
If the notes are not called, the payout at maturity will be par 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 assets: | Russell 2000 index, Dow Jones industrial average and Nasdaq-100 index
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| Amount: | $4,043,000
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| Maturity: | Dec. 9, 2024
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| Coupon: | 10.25% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the observation date for that period
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| Price: | Par
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| Payout at maturity: | Par unless any asset 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
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| Call option: | At par plus the contingent coupon if each index closes above its initial level on any quarterly redemption date
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| Initial levels: | 4,591.67 for S&P, 15,846.16 for Nasdaq, 2,203.479 for Russell
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| Coupon barrier levels: | 3,214.17 for S&P, 11,092.31 for Nasdaq, 1,542.435 for Russell; 70% of initial levels
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| Trigger levels: | 3,214.17 for S&P, 11,092.31 for Nasdaq, 1,542.435 for Russell; 70% of initial levels
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| Pricing date: | Dec. 6
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| Settlement date: | Dec. 9
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.25%
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| Cusip: | 06368GB71
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