Published on 2/7/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $4.48 million callable barrier notes with contingent coupon on two indexes
By William Gullotti
Buffalo, N.Y., Feb. 7 – Bank of Montreal priced $4.48 million of callable barrier notes with contingent coupons due Feb. 7, 2028 linked to the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 7.1% per year if each index’s closing level is at least 60% of its initial level on the relevant observation date.
The notes will be callable on any quarterly observation date.
If the notes are not called and each index finishes at or above its 60% trigger level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Callable barrier notes with contingent coupons
|
| Underlying indexes: | Dow Jones industrial average, S&P 500 index
|
| Amount: | $4.48 million
|
| Maturity: | Feb. 7, 2028
|
| Coupon: | 7.1% 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: | If all indexes finish at or above trigger level, par plus final coupon; otherwise, lose 1% for every 1% decline of the worst performer from its initial level
|
| Call option: | At par plus any coupon due on any quarterly observation date
|
| Initial levels: | 35,629.33 for Dow, 4,589.38 for S&P
|
| Coupon barrier levels: | 21,377.6 for Dow, 2,753.63 for S&P; 60% of initial levels
|
| Trigger levels: | 21,377.6 for Dow, 2,753.63 for S&P; 60% of initial levels
|
| Pricing date: | Feb. 2
|
| Settlement date: | Feb. 7
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.1%
|
| Cusip: | 06368GJN8
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
