By William Gullotti
Buffalo, N.Y., Aug. 25 – Bank of Montreal priced $4.56 million of autocallable notes with a contingent coupons due Aug. 27, 2024 linked to the common stock of Clorox Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon equal to 10% per year if the stock closes at or above its coupon barrier level, 75% of its initial price, on the relevant observation date.
The notes will be automatically redeemed at par plus the contingent coupon if the stock closes at or above its initial price on any quarterly observation date after six months.
If the notes are not called and the stock finishes at or above the coupon barrier, the payout at maturity will be par plus the final coupon.
If the stock finishes below the coupon barrier but at or above 60% of its initial share price, the payout at maturity will be par. Otherwise, investors receive a number of shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable notes with contingent coupon
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| Underlying stock: | Clorox Co.
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| Amount: | $4,558,000
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| Maturity: | Aug. 27, 2024
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| Coupon: | 10% per year, payable quarterly if stock closes at or above coupon barrier level on related observation date
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| Price: | Par
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| Payout at maturity: | If the stock finishes at or above coupon barrier, par plus final coupon; if stock finishes below coupon barrier but not below trigger price, par; otherwise, investors receive a number of shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent
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| Call: | At par plus contingent coupon if stock closes at or above initial price on any observation date after six months
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| Initial price: | $149.13
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| Coupon barrier: | $111.85; 75% of initial price
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| Trigger price: | $89.48; 60% of initial price
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| Pricing date: | Aug. 22
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| Settlement date: | Aug. 25
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 1.75%
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| Cusip: | 06369NCZ2
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