New Issue: BMO sells $4.41 million autocallable barrier notes with contingent coupons on indexes

By William Gullotti

Buffalo, N.Y., Dec. 30 – Bank of Montreal priced $4.41 million of autocallable barrier notes with contingent coupons due Dec. 28, 2028 linked to the Nasdaq-100 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% per year if each index’s closing level is at least 75% 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 at or 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 plus the final coupon if each index’s final level is greater than or equal to its 75% coupon barrier.

If the worst performer finishes below its coupon barrier but at or above the 70% trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the least-performing index from its initial level.

BMO Capital Markets Corp. is the agent.

Issuer:	Bank of Montreal
Issue:	Autocallable barrier notes with contingent coupons
Underlying indexes:	Nasdaq-100 index, Russell 2000 index
Amount:	$4.41 million
Maturity:	Dec. 28, 2028
Coupon:	8% per year, payable quarterly if each index’s closing level is at or above its coupon barrier level on the relevant observation date
Price:	Par
Payout at maturity:	Par plus the final coupon if all indexes finish at or above coupon barrier; if worst performer finishes below its coupon barrier but at or above trigger level, par; otherwise, investors will lose 1% for each 1% decline of the least-performing index from its initial level
Call:	At par plus contingent coupon if indexes close at or above initial levels on any quarterly observation date after six months
Initial levels:	16,180.14 for Nasdaq, 2,221.903 for Russell
Coupon barrier levels:	12,135.11 for Nasdaq, 1,666.427 for Russell; 75% of initial levels
Trigger levels:	11,326.1 for Nasdaq, 1,555.332 for Russell; 70% of initial levels
Pricing date:	Dec. 22
Settlement date:	Dec. 28
Agent:	BMO Capital Markets Corp.
Fees:	2.5%
Cusip:	06368GBX4

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