Published on 1/5/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $5 million callable buffer notes with contingent coupon on indexes, ETF
By Kiku Steinfeld
Chicago, Jan. 5 – Bank of Montreal priced $5 million of callable buffer notes with contingent coupons due Feb. 18, 2025 linked to the iShares MSCI Emerging Markets ETF, the Euro Stoxx 50 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 8.75% per year if each underlier’s closing level is at least 75% of its initial level on the corresponding observation date.
The notes will be callable at par on any monthly observation date after three months.
Unless the worst performer finishes below its 70% buffer level, the payout at maturity will be par. Otherwise, investors will lose 1.4286% for each 1% decline of the worst performer beyond 30%.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Callable buffer notes with contingent coupons
|
| Underlying assets: | iShares MSCI Emerging Markets ETF, Euro Stoxx 50 index, Russell 2000 index
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| Amount: | $5 million
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| Maturity: | Feb. 18, 2025
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| Coupon: | 8.75% per year, payable monthly if each underlier’s closing level is at or above its coupon barrier level on the corresponding observation date
|
| Price: | Par
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| Payout at maturity: | Par unless the worst performer finishes below its buffer level; otherwise, investors will lose 1.4286% for each 1% decline of worst performer below the buffer level
|
| Call option: | At par on any monthly observation date after three months
|
| Initial levels: | $52 for ETF, 4,370.33 for Stoxx, 2,411.776 for Russell
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| Coupon barrier levels: | $39 for ETF, 3,277.75 for Stoxx, 1,808.832 for Russell; 75% of initial levels
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| Buffer levels: | $36.40 for ETF, 3,059.23 for Stoxx, 1,688.243 for Russell; 70% of initial levels
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| Pricing date: | Nov. 12
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| Settlement date: | Nov. 17
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.05%
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| Cusip: | 06368G4V6
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