Published on 3/18/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $2.3 million callable barrier notes with contingent coupon on three indexes
By William Gullotti
Buffalo, N.Y., March 18 – Bank of Montreal priced $2.3 million of callable barrier notes with contingent coupons due March 18, 2027 linked to the Russell 2000 index, the Nasdaq-100 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon equal to 10.35% per year if each index’s closing level is at least 75% of its initial level on the relevant observation date.
The notes will be callable on any monthly observation date after one year.
If the notes are not called and each index finishes at or above its coupon barrier, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but at or above the 60% trigger level, the payout at maturity will be par. 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: | Russell 2000 index, Nasdaq-100 index, Dow Jones industrial average
|
Amount: | $2,295,000
|
Maturity: | March 18, 2027
|
Coupon: | 10.35% per year, payable monthly 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 coupon barrier, par plus final coupon; if the worst performer finishes below coupon barrier but not below trigger level, par; 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 monthly observation date after one year
|
Initial levels: | 1,968.969 for Russell, 13,458.56 for Nasdaq, 33,544.34 for Dow
|
Coupon barrier levels: | 1,476.727 for Russell, 10,093.92 for Nasdaq, 25,158.26 for Dow; 75% of initial levels
|
Trigger levels: | 1,181.381 for Russell, 8,075.14 for Nasdaq, 20,126.6 for Dow; 60% of initial levels
|
Pricing date: | March 15
|
Settlement date: | March 18
|
Agent: | BMO Capital Markets Corp.
|
Fees: | 0.625%
|
Cusip: | 06368GMT1
|
|
© 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.