By William Gullotti
Buffalo, N.Y., June 29 – Bank of Montreal priced $1.08 million of callable barrier notes with contingent coupons due June 28, 2027 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 8.1% per year if the index’s closing level is at least 70% of its initial level on the relevant observation date.
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 its 70% coupon barrier, the payout at maturity will be par plus the final coupon.
If the index finishes below its coupon barrier but at or above its 50% 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 contingent coupons
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Underlying index: | S&P 500 index
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Amount: | $1,082,000
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Maturity: | June 28, 2027
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Coupon: | 8.1% per year, payable quarterly if the index’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: | Par plus final coupon if index finishes at or above coupon barrier; if index finishes below coupon barrier but at or above trigger level, par; otherwise, lose 1% for each 1% of index decline from 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: | 4,348.33
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Coupon barrier level: | 3,043.83; 70% of initial level
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Trigger level: | 2,174.17; 50% of initial level
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Pricing date: | June 23
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Settlement date: | June 28
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Agent: | BMO Capital Markets Corp.
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Fees: | 0.25%
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Cusip: | 06374VXW1
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