Published on 5/18/2023 in the Prospect News Structured Products Daily.
New Issue: BMO prices $588,000 autocallable barrier notes with contingent coupon on stock basket
Chicago, May 18 – Bank of Montreal priced $588,000 of 0% autocallable barrier notes with contingent coupon due Dec. 31, 2024 linked to an equally weighted basket of the common stocks of Apple, Inc., Microsoft Corp., Amazon.com, Inc., Netflix, Inc. and Nvidia Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a monthly coupon equal to 10.5% per year if the stock basket closes above its coupon barrier level, 70% of its initial level, on the relevant observation date.
The notes will be automatically redeemed at par if the stock basket closes at or above its initial level on any monthly observation date after six months.
If the notes are not called and the basket finishes at or above 70% of its initial level, the payout will be par. Otherwise, investors will lose 1% for each 1% decline of the basket 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 coupon
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| Underlying components: | Apple, Inc., Microsoft Corp., Amazon.com, Inc., Netflix, Inc. and Nvidia Corp.; equally weighted
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| Amount: | $588,000
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| Maturity: | Dec. 31, 2024
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| Coupon: | 10.5% per year, payable monthly if stock basket closes at or above coupon barrier level on related observation date
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| Price: | Par
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| Payout at maturity: | Par if stock basket finishes above trigger level; otherwise, lose 1% for each 1% decline of stock basket from its initial level
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| Call: | At par if the stock basket closes at or above initial level on any monthly observation date after six months
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| Initial basket level: | $141.66 for Apple, $113.22 for Amazon, $264.89 for Microsoft, $189.14 for Netflix and $168.69 for Nvidia
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| Coupon barrier level: | 70% of initial level
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| Trigger level: | 70% of initial level
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| Pricing date: | June 27, 2022
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| Settlement date: | June 30, 2022
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| Agent: | BMO Capital Markets Corp.
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| Fees: | 3.25%
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| Cusip: | 06368GUS4
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