By William Gullotti
Buffalo, N.Y., Sept. 27 – Bank of Montreal priced $1.3 million of callable barrier notes with contingent coupons due Sept. 28, 2023 linked to the performance of 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 8% per year if the index’s closing level is at least 60% of its initial level on the relevant observation date.
The notes will be callable at par plus any coupon otherwise due on any monthly observation date.
If the notes are not called, the payout at maturity will be par plus the final coupon unless the index finishes below its 60% trigger level, in which case investors will lose 1% for each 1% of index decline from its initial level.
BMO Capital Markets Corp. is the agent.
| Issuer: | Bank of Montreal
|
| Issue: | Callable barrier notes with contingent coupons
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| Underlying index: | S&P 500 index
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| Amount: | $1.3 million
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| Maturity: | Sept. 28, 2023
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| Coupon: | 8% per year, payable monthly if the index’s closing level is at or above its coupon barrier level on the relevant observation date
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon unless the index finishes below its trigger level, in which case investors will lose 1% for each 1% of index decline from its initial level
|
| Call option: | At par plus any coupon due on any monthly observation date
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| Initial level: | 3,855.93
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| Coupon barrier level: | 2,313.56; 60% of initial levels
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| Trigger level: | 2,313.56; 60% of initial levels
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| Strike date: | Sept. 20
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| Pricing date: | Sept. 22
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| Settlement date: | Sept. 27
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 0.5%
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| Cusip: | 06374V6V3
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