By William Gullotti
Buffalo, N.Y., Sept. 7 – Bank of Montreal priced $1.72 million of market-linked securities – autocallable with contingent coupon and contingent downside due Aug. 27, 2026 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8% if the index closes at or above its 70% coupon threshold on the observation date for that period.
The notes will be called at par plus the coupon if the index closes at or above its initial level on any quarterly observation date after six months.
If the notes are not called and the index’s final level is greater than or equal to its 70% downside threshold, the payout at maturity will be par plus the final coupon.
Otherwise, investors will be fully exposed to the decline of the index from its initial level.
BMO Capital Markets Corp. is the agent with Wells Fargo Securities, LLC acting as the agent for distribution.
| Issuer: | Bank of Montreal
|
| Issue: | Market linked securities – autocallable with contingent coupon and contingent downside
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| Underlying index: | S&P 500 index
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| Amount: | $1,717,000
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| Maturity: | Aug. 27, 2026
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| Coupon: | 8% annualized, payable quarterly if the index closes at or above coupon threshold on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If the index finishes at or above downside threshold, par plus final coupon; otherwise, 1% loss for every 1% decline of index from initial level
|
| Call: | At par plus coupon if the index closes at or above its initial level on any quarterly observation date after six months
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| Initial level: | 3,955.0
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| Coupon threshold: | 2,768.5; 70% of initial level
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| Downside threshold: | 2,768.5; 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. with Wells Fargo Securities, LLC as agent for distribution
|
| Fees: | 2.175%
|
| Cusip: | 06368GYA9
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