Published on 7/21/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $366,000 callable barrier notes with contingent coupons on indexes
By Kiku Steinfeld
Chicago, July 21 – Bank of Montreal priced $366,000 of callable barrier notes with contingent coupons due Dec. 29, 2028 linked to the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 7% per year if each index's closing level is at least 70% of its initial level on the corresponding observation date.
The notes may be called at par on any monthly observation date beginning March 28, 2022.
If the notes are not called and each index finishes at or above its 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
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| Issue: | Callable barrier notes with contingent coupons
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index
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| Amount: | $366,000
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| Maturity: | Dec. 29, 2028
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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: | Par if all indexes finish at or above trigger level; otherwise, investors will lose 1% for each 1% decline of the worst performer from its initial level
|
| Call option: | At par on any monthly observation date beginning March 28, 2022
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| Initial levels: | 2,249.244 for Russell, 16,491.01 for Nasdaq
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| Coupon barrier levels: | 1,574.471 for Russell, 11,543.71 for Nasdaq; 70% of initial levels
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| Trigger levels: | 1,349.546 for Russell, 9,894.61 for Nasdaq; 60% initial levels
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| Pricing date: | Dec. 29
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| Settlement date: | Dec. 31
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 2.5%
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| Cusip: | 06368GD38
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