By Wendy Van Sickle
Columbus, Ohio, July 25 – Bank of Montreal priced $1 million of callable barrier notes with contingent coupons due July 26, 2027 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 5% per year if the index’s closing level is at least 50% 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 one year.
If the notes are not called and the index finishes at or above 50% 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
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Issue: | Callable barrier notes with contingent coupons
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Underlying index: | S&P 500 index
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Amount: | $1 million
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Maturity: | July 26, 2027
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Coupon: | 5% per year, payable quarterly if the 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 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
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Call option: | At par plus any coupon due on any quarterly observation date after one year
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Initial level: | 3,959.9
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Coupon barrier level: | 1,979.95; 50% of initial level
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Trigger level: | 1,979.95; 50% of initial level
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Pricing date: | July 20
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Settlement date: | July 25
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.25%
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Cusip: | 06368GXZ5
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