Published on 8/8/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $775,000 callable barrier notes with contingent coupon on indexes
By Kiku Steinfeld
Chicago, Aug. 8 – Bank of Montreal priced $775,000 of callable barrier notes with contingent coupons due Jan. 20, 2026 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon equal to 9.25% per year if each index’s closing level is at least 70% of its initial level on the relevant observation date.
The notes will be callable at par on any monthly observation date starting April 14, 2022.
If the notes are not called and each index finishes at or above its 70% 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 selling 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, S&P 500 index
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| Amount: | $775,000
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| Maturity: | Jan. 20, 2026
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| Coupon: | 9.25% 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; 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 monthly observation date starting April 14, 2022
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| Initial levels: | 2,176.057 for Russell, 15,905.10 for Nasdaq, 4,726.35 for S&P
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| Coupon barrier levels: | 1,523.240 for Russell, 11,133.57 for Nasdaq, 3,308.45 for S&P; 70% of initial levels
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| Trigger levels: | 1,523.240 for Russell, 11,133.57 for Nasdaq, 3,308.45 for S&P; 70% of initial levels
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| Pricing date: | Jan. 12
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| Settlement date: | Jan. 18
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.75%
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| Cusip: | 06368GES2
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