Published on 6/6/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $1 million callable barrier notes with contingent coupon on three indexes
Chicago, June 6 – Bank of Montreal priced $1 million of callable barrier notes with contingent coupons due Nov. 27, 2026 linked to the least performing of the S&P 500 index, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 6.5% per year if each index’s closing level is at least 65% of its initial level on the relevant observation date.
The notes will be callable at par on any quarterly observation date after six months.
If the notes are not called, the payout at maturity will be par plus the final coupon if each index finishes at or above 65% trigger level. 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: | Callable barrier notes with contingent coupons
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Underlying indexes: | S&P 500 index, Nasdaq-100 index, Russell 2000 index
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Amount: | $1,000,000
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Maturity: | Nov. 27, 2026
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Coupon: | 6.5% per year, payable quarterly 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; otherwise, lose 1% for every 1% decline of the worst performer from its initial level
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Call option: | At par plus any coupon due on any quarterly observation date after six months
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Initial levels: | 4,682.94 for S&P, 16,380.98 for Nasdaq, 2,331.348 for Russell
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Coupon barrier levels: | 3,043.91 for S&P, 10,647.64 for Nasdaq, 1,515.376 for Russell; 65% of initial levels
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Trigger levels: | 3,043.91 for S&P, 10,647.64 for Nasdaq, 1,515.376 for Russell; 65% of initial levels
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Pricing date: | Nov. 22, 2021
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Settlement date: | Nov. 26, 2021
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Agent: | BMO Capital Markets Corp.
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Fees: | 1.75%
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Cusip: | 06368G4R5
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