Published on 9/7/2022 in the Prospect News Structured Products Daily.
New Issue: BMO sells $406,000 autocallable barrier notes with contingent coupon on gold ETFs
By Kiku Steinfeld
Chicago, Sept. 7 – Bank of Montreal priced $406,000 of autocallable barrier notes with contingent coupons due April 28, 2023 linked to the least performing of the VanEck Vectors Junior Gold Miners ETF and the VanEck Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 7.5% per year if each ETF’s closing level is at least 70% of its initial level on the corresponding observation date.
The notes will be automatically redeemed at par plus the contingent coupon if each ETF closes above its initial level on any monthly observation date after six months.
If the notes have not been called and each ETF finishes at or above its 70% trigger level, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
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| Issue: | Autocallable barrier notes with contingent coupons
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| Underlying funds: | VanEck Vectors Gold Miners ETF, VanEck Vectors Junior Gold Miners ETF
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| Amount: | $406,000
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| Maturity: | April 28, 2023
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| Coupon: | 7.5% per year, payable monthly if each 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: | If each ETF finishes at or above trigger level, par plus final coupon; otherwise, 1% loss for each 1% decline of the worst performer from initial level
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| Call: | At par plus contingent coupon if all ETFs close at or above initial levels on any monthly observation date after six months
|
| Initial levels: | $30.63 for gold, $38.87 for junior gold
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| Coupon barrier levels: | $21.44 for gold, $27.21 for junior gold; 70% of initial levels
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| Trigger levels: | $21.44 for gold, $27.21 for junior gold; 70% of initial levels
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| Pricing date: | Jan. 26, 2022
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| Settlement date: | Jan. 31, 2022
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 2.25%
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| Cusip: | 06368GEF0
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