Published on 6/3/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $2.51 million autocallable barrier notes with contingent coupon on three indexes
By Wendy Van Sickle
Columbus, Ohio, June 3 – Bank of Montreal priced $2.51 million of autocallable barrier notes with contingent coupons due June 3, 2024 linked to the least performing of the Russell 2000 index, the S&P 500 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 7% per year if each index’s closing level is at least 50% of its initial level on the relevant observation date.
The notes will be called at par if each index closes above its initial level on any monthly observation date after six months.
If the notes are not called and each index finishes at or above its 50% trigger level, the payout at maturity will be par plus the final coupon, if any.
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
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| Issue: | Autocallable barrier notes with contingent coupons
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Dow Jones industrial average
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| Amount: | $2,505,000
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| Maturity: | June 3, 2024
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| Coupon: | 7% per year, payable monthly if each index’s closing level is at or above its coupon barrier level on the relevant observation date
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| Price: | Par
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| Payout at maturity: | If all indexes finish at or above trigger level, par plus final coupon, if any; otherwise, lose 1% for every 1% decline of the worst performer from its initial level
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| Call: | At par plus any coupon due if each index closes above initial level on any monthly observation date after six months
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| Initial levels: | 1,864.043 for Russell, 4,132.15 for S&P, 32,990.12 for Dow
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| Coupon barrier levels: | 932.022 for Russell, 2,066.08 for S&P, 16,495.06 for Dow; 50% of initial levels
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| Trigger levels: | 932.022 for Russell, 2,066.08 for S&P, 16,495.06 for Dow; 50% of initial levels
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| Pricing date: | May 31
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| Settlement date: | June 3
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 1.2%
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| Cusip: | 06368GTE7
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