Published on 2/28/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $3.03 million autocallable barrier notes with contingent coupon on indexes, ETF
By William Gullotti
Buffalo, N.Y., Feb. 28 – Bank of Montreal priced $3.03 million of autocallable barrier notes with contingent coupons due July 29, 2022 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the shares of VanEck Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Every month, the notes will pay a coupon equal to 12% per year if each asset’s closing level is at least 65% of its initial level on the observation date for that period.
The notes will be automatically redeemed at par plus the contingent coupon if each asset closes above its initial level on any monthly observation date after six months.
If the notes are not called, the payout at maturity will be par unless any asset finishes below its initial level and any asset closes below its 65% trigger level during the life of the notes, in which case investors will lose 1% for each 1% decline based on the final level from the initial level of the least-performing asset.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Autocallable barrier notes with contingent coupons
|
| Underlying assets: | Nasdaq-100 index, Russell 2000 index, VanEck Vectors Gold Miners ETF
|
| Amount: | $3,028,000
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| Maturity: | July 29, 2022
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| Coupon: | 12% per year, payable monthly if each asset’s closing level is at or above its coupon barrier level on the observation date for that period
|
| Price: | Par
|
| Payout at maturity: | Par unless any asset finishes below its initial level and any asset ever closes below its trigger level during the life of the notes, in which case investors will lose 1% for each 1% decline from the initial level of the least-performing asset
|
| Call: | At par plus contingent coupon if assets close above initial levels on any monthly observation date after one year
|
| Initial levels: | 14,026.16 for Nasdaq, 2,298.007 for Russell, $35.98 for VanEck
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| Coupon barrier levels: | 9,117 for Nasdaq, 1,493.705 for Russell, $23.39 for VanEck; 65% of initial levels
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| Trigger levels: | 9,117 for Nasdaq, 1,493.705 for Russell, $23.39 for VanEck; 65% of initial levels
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| Pricing date: | April 26, 2021
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| Settlement date: | April 29, 2021
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| Agent: | BMO Capital Markets Corp.
|
| Fees: | 0.25%
|
| Cusip: | 06368EKP6
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