By William Gullotti
Buffalo, N.Y., Sept. 7 – Bank of Montreal priced $3 million of callable barrier notes with contingent coupons due Sept. 6, 2024 linked to the performance of the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon equal to 11.05% per year if the ETF’s closing level is at least 70% 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.
If the notes are not called, the payout at maturity will be par plus the final coupon unless the ETF finishes below its 70% trigger level, in which case investors will lose 1% for each 1% of ETF 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 fund: | SPDR S&P 500 ETF Trust
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| Amount: | $3 million
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| Maturity: | Sept. 6, 2024
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| Coupon: | 11.05% per year, payable quarterly if the ETF’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 ETF finishes below its trigger level, in which case investors will lose 1% for each 1% of ETF decline from its initial level
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| Call option: | At par plus any coupon due on any quarterly observation date
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| Initial level: | $395.18
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| Coupon barrier level: | $276.63; 70% of initial level
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| Trigger level: | $276.63; 70% of initial level
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| Pricing date: | Aug. 31
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| Settlement date: | Sept. 6
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.5%
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| Cusip: | 06374V4U7
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