By Wendy Van Sickle
Columbus, Ohio, July 1 – Bank of Montreal priced $3.69 million of callable barrier notes with contingent coupons due June 30, 2026 linked to the performance of the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 7% per year if the index’s closing level is at least 60% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon otherwise due on any quarterly observation date after six months.
If the notes are not called and the index finishes at or above 60% of initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for each 1% of index decline from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Callable barrier notes with contingent coupons
|
| Underlying index: | S&P 500 index
|
| Amount: | $3,694,000
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| Maturity: | June 30, 2026
|
| Coupon: | 7% per year, payable quarterly if the index’s closing level is at or above its coupon barrier level on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon unless the index finishes below its trigger level, in which case investors will lose 1% for each 1% of index decline from its initial level
|
| Call option: | At par plus any coupon due on any quarterly observation date after six months
|
| Initial level: | 3,821.55
|
| Coupon barrier level: | 2,292.93; 60% of initial level
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| Trigger level: | 2,292.93; 60% of initial level
|
| Pricing date: | June 28
|
| Settlement date: | June 30
|
| Agent: | BMO Capital Markets Corp.
|
| Fees: | 2.5%
|
| Cusip: | 06368GVY0
|
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