Published on 2/25/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1.7 million autocallable barrier notes with contingent coupon on indexes
By Wendy Van Sickle
Columbus, Ohio, Feb. 25 – Bank of Montreal priced $1.7 million of autocallable barrier notes with contingent coupons due Feb. 24, 2027 linked to the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every quarter, the notes will pay a coupon equal to 6% per year if each index’s closing level is at least 60% of its initial level on the observation date for that quarter.
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 after one year.
If the notes are not called, the payout at maturity will be par unless any index finishes below its 60% trigger level, in which case investors will lose 1% for each 1% decline from the worst performer’s initial level.
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: | Euro Stoxx 50 index, Russell 2000 index, S&P 500 index
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| Amount: | $1.7 million
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| Maturity: | Feb. 24, 2027
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| Coupon: | 6% 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 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
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| Call: | At par plus contingent coupon if indexes close above initial levels on any quarterly observation date after one year
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| Initial levels: | 3,985.47 for Stoxx, 1,980.173 for Russell, 4,304.76 for S&P
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| Coupon barrier levels: | 2,391.28 for Stoxx, 1,188.104 for Russell, 2,582.86 for S&P; 60% of initial levels
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| Trigger levels: | 2,391.28 for Stoxx, 1,188.104 for Russell, 2,582.86 for S&P; 60% of initial levels
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| Pricing date: | Feb. 22
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| Settlement date: | Feb. 25
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3.35%
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| Cusip: | 06368GKP1
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