New Issue: Bank of Montreal prices $760,000 callable barrier notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., July 18 – Bank of Montreal priced $760,000 of callable barrier notes with contingent coupons due July 31, 2025 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes pay a contingent coupon equal to 8% per year if the index’s closing level is at least 65% of its initial level on the observation date for that month.

Beginning Oct. 26, 2022, the notes are callable at par on any monthly observation date.

If the notes are not called and the index finishes at or above its 60% trigger level, the payout at maturity 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
Issue:	Callable barrier notes with contingent coupons
Underlying index:	S&P 500 index
Amount:	$760,000
Maturity:	July 31, 2025
Coupon:	8% per year, payable monthly if index closes at or above coupon barrier level on relevant observation date
Price:	Par
Payout at maturity:	Par if index finishes at or above trigger level; otherwise, lose 1% for each 1% of index decline from initial level
Call option:	Beginning Oct. 26, 2022, callable at par on any monthly observation date
Initial level:	4,023.61
Coupon barrier level:	2,615.35, or 65% of initial level
Trigger level:	2,414.17, or 60% of initial level
Pricing date:	July 27, 2022
Settlement date:	July 29, 2022
Agent:	BMO Capital Markets Corp.
Fees:	1.5%
Cusip:	06368GXR3

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