By William Gullotti
Buffalo, N.Y., June 6 – Bank of Montreal priced $2.94 million of callable barrier notes with memory coupons due May 29, 2026 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 quarterly coupon equal to 8.25% per year if the index’s closing level is at least 70% of its initial level on the relevant observation date. Previously unpaid coupons, if any, will be automatically included whenever a contingent coupon is paid.
The notes will be callable at par plus any coupon otherwise due on any quarterly observation date after six months.
If the notes are not called and the index finishes at or above 70% of initial level, the payout at maturity will be par plus all unpaid coupons.
If the index declines but finishes at or above its 60% trigger level, the payout will be par. Otherwise, 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
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| Issue: | Callable barrier notes with memory coupons
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| Underlying index: | S&P 500 index
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| Amount: | $2,935,000
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| Maturity: | May 29, 2026
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| Coupon: | 8.25% per year, payable quarterly if the index’s closing level is at or above its coupon barrier level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par plus all unpaid coupons if index finishes at or above coupon barrier; par if index declines but finishes at or above trigger level; otherwise, investors will lose 1% for each 1% of index decline from its initial level
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| Call option: | At par plus any coupon due on any quarterly observation date after six months
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| Initial level: | 4,151.28
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| Coupon barrier level: | 2,905.9; 70% of initial level
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| Trigger level: | 2,490.77; 60% of initial level
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| Pricing date: | May 25
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| Settlement date: | May 31
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| Agent: | BMO Capital Markets Corp.
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| Fees: | None
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| Cusip: | 06374VVR4
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